- U.S. sanctions Chinese firms and ships for aiding Iran’s oil trade worth hundreds of millions of dollars.
- Targeted companies include a Hebei refinery and Shandong port operators, accused of importing and distributing Iranian crude.
- Sanctions aim to cut Iran’s oil revenue as nuclear talks resume, with Washington pushing for a new agreement.
The United States (U.S.) imposed new sanctions on several Chinese firms and vessels for their roles in transporting Iranian oil. The move targets Iran’s oil revenue and supports Washington’s push to revive nuclear talks.
The U.S. Treasury Department named the sanctioned firms on Thursday, May 8. The list includes a small independent refinery in Hebei province and three port operators in Shandong. These companies bought and transported Iranian crude worth several hundred million dollars.
The Hebei refinery, known as a “teapot,” processed the Iranian oil illegally. These privately owned facilities are central to China’s domestic fuel supply.
The three Shandong-based port operators handled deliveries of the sanctioned crude. Their terminals are major import points for refineries on China’s eastern coast.
The U.S. State Department also named several vessels, captains, and ship-owning companies involved in the trade. U.S. officials described the ships as part of Iran’s “ghost fleet,” which helps Tehran evade sanctions by disguising oil shipments.
“These sanctions hit key actors in Iran’s oil smuggling network,” said Treasury Secretary Scott Bessent. “We will keep applying pressure on every link in the chain that funds Iran’s destabilising actions in the region.”
Iran continues to sell its oil abroad using hidden shipping routes and opaque transactions. China remains one of Iran’s biggest oil buyers, even under the shadow of U.S. sanctions.
The new measures follow the recent restart of indirect talks between Washington and Tehran. Oman has facilitated the negotiations since April. The U.S. aims to prevent Iran from acquiring nuclear weapons. Iran claims its nuclear program supports only civilian energy needs.
President Joe Biden recently reaffirmed his commitment to strict sanctions enforcement. On Truth Social, he vowed to “immediately” increase pressure on Iran through the long-standing “maximum pressure” policy.
Former President Donald Trump launched the policy to force Iran back to the negotiating table. The strategy links any economic relief to Iran’s willingness to accept limits on its nuclear program.
U.S. officials believe these new sanctions could force Iran to reconsider its approach. Oil exports remain Iran’s top source of foreign revenue. The U.S. hopes to tighten the squeeze on Tehran by cutting off routes and buyers.
Chinese firms have often ignored U.S. secondary sanctions, which the Chinese government has criticised as illegal. Beijing has not yet responded to the latest U.S. actions.
Analysts say the sanctions show Washington’s intent to corner Iran economically while keeping diplomatic channels open. However, they warn of possible friction between the U.S. and China over energy trade.
The Biden administration says it will keep the sanctions in place until Iran meets its nuclear obligations. Talks between U.S. and Iranian representatives will continue in the coming weeks.