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The United States has leveled sanctions against two Chinese petrochemical companies for purportedly importing Iranian crude oil, marking the latest move in President Donald Trump’s “maximum pressure” strategy against the Islamic Republic.
The State Department announced sanctions against Huaying Huizhou Daya Bay Petrochemical Terminal Storage for breaching American sanctions by acquiring and storing Iranian crude oil transported to China on a vessel already under restrictions.
Additionally, the Treasury Department has imposed sanctions on Chinese refiner Luqing Petrochemical for purchasing Iranian crude oil shipped via vessels connected to the Houthis and Iranian military.
The sanctions against Luqing Petrochemical signify the first instance Washington has enacted such penalties on a “teapot” refiner — private Chinese facilities that predominantly purchase Iranian crude oil.
“Purchases of Iranian oil by teapot refineries serve as a crucial economic lifeline for the Iranian regime, the world’s foremost state sponsor of terrorism,” stated Scott Bessent, US Treasury Secretary. “The United States is resolute in severing the revenue streams that support Tehran’s ongoing financing of terrorism and its nuclear program.”
This month, Trump reached out to Iran’s supreme leader, urging him to negotiate a deal with the US regarding its nuclear initiatives. He has warned of “terrible” repercussions if Tehran declines to engage in diplomatic efforts, yet Iran has not replied to the overture.
Last month, Trump declared that he was reinstating his “maximum pressure” campaign on Iran, which would encompass sanctions on entities transporting Iranian oil to China. The aim is to compel Iran to come to the negotiating table on more favorable terms for the US, though it remains uncertain if Tehran has any interest in doing so.
Iran’s exports of crude oil have surged more than threefold in the last four years, increasing from a low of 400,000 barrels per day in 2020 to over 1.5 million barrels per day in the first three quarters, with nearly all shipments destined for China, according to the latest data from the US Energy Information Agency.
As a member of the OPEC oil-exporting cartel, Iran has an estimated total production capacity of about 3.8 million barrels per day. China, the largest global importer of foreign crude oil, brought in approximately 11 million barrels per day last year.
Iran’s hardline factions are striving to undercut the country’s reformist President Masoud Pezeshkian and obstruct negotiations with the US. Trump has designated his special envoy Steve Witkoff to manage the Iran dossier, and his team has begun preliminary work, although diplomats indicate Trump has yet to appoint a daily representative for the matter.
“As long as Iran seeks to generate oil revenue to fund its destabilizing activities, the United States will ensure both Iran and all its sanctions-evading partners face accountability,” remarked Tammy Bruce, State Department spokesperson.
The US stated that these sanctions are part of an intensified effort aimed at eliminating Iranian oil exports, including to China.
The Treasury Department is also sanctioning 19 additional entities, including the Chinese and Hong Kong owners of ships that are part of a “shadow fleet” supplying refineries in China.
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The US continues to express concerns regarding cooperation between Tehran and Beijing across various aspects, including oil supplies and Chinese exports that assist in weapons development in Iran.
The Financial Times reported in January that two Iranian vessels carrying a chemical component for missile propellant were preparing to set sail from China to Iran in the ensuing weeks. The initial vessel, an Iranian-owned ship named the Golbon, has since left China and arrived at Bandar Abbas, a port located in southern Iran along the Gulf.
The Chinese embassy has not responded promptly to a request for comments regarding the new sanctions.
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