The Trump administration announced sweeping sanctions against Hengli Petrochemical (Dalian) Refinery, one of China’s largest independent “teapot” refineries.
The U.S. Treasury Department accused the company of purchasing billions of dollars in Iranian oil providing a critical financial lifeline to Tehran.
The sanctions also hit approximately 40 shipping companies and vessels described as part of Iran’s “shadow fleet.”
U.S. Treasury Secretary Scott Bessent stated that the action is part of a strategy to impose a “financial stranglehold” on the Iranian government. He warned that the:
“Treasury will continue to constrict the network of vessels, intermediaries and buyers Iran relies on to move its oil to global markets.”
The move comes at a sensitive time, as Washington and Tehran struggle with peace talks and President Trump prepares for a high-stakes meeting with Chinese President Xi Jinping in May.
Beijing has reacted sharply with a spokesperson for the Chinese embassy calling on the U.S. to “stop abusing various kinds of sanction to hit Chinese companies.”
Despite these warning, Washington remains firm noting that “any person or vessel facilitating these flows – through covert trade and finance – risks exposure to U.S. sanctions.”
