US sanctions Chinese refinery over Iranian oil purchases amid rising tensions
The United States has imposed fresh sanctions on a Chinese independent refinery, escalating tensions with both Beijing and Tehran at a sensitive diplomatic moment. The move comes as Washington and Iran prepare for another round of talks aimed at easing long-standing conflicts over Iran’s nuclear program and regional influence.
According to the US Treasury Department, the sanctions target Hengli Petrochemical (Dalian) Refinery, described as one of the largest buyers of Iranian crude oil and petroleum products. Officials allege that the refinery has purchased billions of dollars’ worth of oil from Iran, in violation of US sanctions designed to cut off Tehran’s revenue sources.
The Treasury’s Office of Foreign Assets Control (OFAC) also announced penalties against around 40 shipping companies and vessels. These entities are accused of being part of Iran’s so-called “shadow fleet,” a network used to secretly transport oil and bypass international restrictions.
US authorities argue that these actions are necessary to maintain pressure on Iran, particularly as diplomatic negotiations continue. By restricting Iran’s oil exports, Washington aims to limit the country’s economic resources and influence.
China, however, has strongly criticized the sanctions. The Chinese government has consistently opposed what it calls “illegal” unilateral measures imposed by the United States. In a statement released Friday, the Chinese embassy in Washington urged the US to avoid disrupting legitimate trade activities and accused it of misusing sanctions as a political tool.
“We call on the US to stop politicising trade and technological issues, and to cease using sanctions as a weapon against Chinese companies,” a spokesperson for the embassy said.
This is not the first time the US has targeted Chinese firms over their dealings with Iran. In the past year, sanctions were also imposed on companies such as Hebei Xinhai Chemical Group, Shandong Shouguang Luqing Petrochemical, and Shandong Shengxing Chemical for similar activities.
The latest development highlights the growing strain between the US and China over trade and foreign policy, while also underscoring the challenges facing ongoing diplomatic efforts with Iran.