US Sanctions on Chinese Oil Refinery Impacting Iran Trade
On Thursday, the United States escalated its sanctions by targeting a Chinese oil refinery that had purchased about $500 million worth of Iranian oil from vessels linked to the Houthis. This move is part of a broader strategy by the White House to exert pressure on Iran. The U.S. Treasury Department confirmed that it had imposed sanctions on a smaller, privately-owned refinery in Shandong province, known as a “teapot refinery,” which had been involved in acquiring significant amounts of Iranian oil.
In the wake of these sanctions, Beijing promptly responded on Friday, accusing the United States of undermining normal trade relations between China and Iran. The tensions have been further amplified since President Donald Trump began his presidency, reimposing a campaign of “maximum pressure” against Iran, which has already seen sanctions levied against numerous individuals and entities, including the Iranian oil minister.
Details of the Sanctioned Shipments
The Treasury Department revealed that the Iranian oil in question was delivered via Iran’s so-called “shadow fleet”—a network of tankers, some of which are linked to the Iranian ministry responsible for defense and armed forces logistics. These clandestine operations highlight the lengths to which Iran will go to continue its oil exports despite international sanctions aimed at crippling its economy.
Moreover, the U.S. has sanctioned an additional 19 ships and companies that are involved in supplying these refineries. Treasury Secretary Scott Bessent emphasized that the purchases of Iranian oil by these teapot refineries serve as a vital economic lifeline for Iran, which is recognized as the leading state sponsor of terrorism.
Impact on Chinese Trade and Relations
In parallel to the Treasury’s actions, the U.S. State Department announced its own sanctions against a Chinese oil terminal. This was framed as a component of President Trump’s extensive campaign aimed at completely halting Iran’s oil exports, especially to countries like China, which is the largest importer of Iranian crude. State Department spokesperson Tammy Bruce underlined that the revenue generated from these oil exports is used by Tehran to fund attacks against U.S. allies and bolster terrorist activities worldwide.
Responding to these latest developments, China’s foreign ministry reiterated its longstanding opposition to unilateral sanctions enforced by the U.S., labeling them as ‘illegal.’ Ministry spokesperson Mao Ning asserted that China would take all necessary measures to safeguard the rights and interests of its enterprises involved in legitimate trade.
