The United States announced new sanctions aimed at diminishing Iran’s oil exports, marking the fourth round of such measures since President Donald Trump reinstated a “maximum pressure” campaign earlier this year. These latest sanctions specifically target a Chinese “teapot refinery,” which has been processing Iranian crude oil.
The US Treasury has identified Shandong Shouguang Luqing Petrochemical Co., Ltd., based in China, as the first of its kind to be sanctioned by the US government. In a statement, US Treasury Secretary Scott Bessent emphasized that purchases of Iranian oil by these teapot refineries provide critical economic support to the Iranian regime, which the US labels as the leading state sponsor of terrorism.
This action underscores the US commitment to curtailing Iran’s oil sales, particularly as they are used to fund activities such as support for militant groups like the Houthis in Yemen. Notably, the US had previously sanctioned another Chinese refiner, Shandong Haiyou Petrochemical, in 2022.
Despite US efforts, China remains the largest importer of Iranian oil and often disregards US sanctions. Beijing and Tehran have established a trading framework that primarily uses the Chinese yuan, allowing them to bypass the US dollar and evade American regulations.
In response to the US actions, a Chinese embassy spokesperson voiced strong opposition to what they deem illegal and unjust sanctions. Additionally, China and Russia have reaffirmed their support for Iran amidst ongoing nuclear negotiations, emphasizing that dialogue should proceed on the basis of mutual respect and the lifting of sanctions.
The new sanctions package also includes measures against 12 other entities and identifies eight vessels linked to transporting Iranian oil to China. Furthermore, Wang Xueqing, who is associated with the targeted refinery, has been added to the specially designated nationals list, prohibiting US citizens from conducting business with him and freezing his assets within the US.
The State Department is also targeting a Chinese oil terminal known for handling Iranian crude from a sanctioned vessel.