- The U.S. sanctions a Chinese refinery for importing 60,000 barrels of Iranian crude daily, increasing pressure on Tehran.
- Washington revokes Iraq’s waiver to buy Iranian electricity, tightening restrictions on Iran’s economy.
- Iran boosts oil exports to 1.5 million barrels daily, anticipating stricter U.S. measures.
The United States has sanctioned Shouguang Luqing, an independent Chinese refinery, for processing Iranian crude. This move increases pressure on Tehran and pushes for renewed nuclear talks.
Shouguang Luqing imports up to 60,000 barrels of Iranian oil daily. The latest sanctions mark Washington’s fourth crackdown this year on Asian buyers of Iranian crude. Rystad Energy reports that China purchases nearly all of Iran’s oil exports.
By targeting a small “teapot” refinery, U.S. officials aim to disrupt Iran’s oil sales while pressuring Beijing to cut imports. Washington also revoked a waiver that allowed Iraq to buy Iranian electricity, further limiting Tehran’s economic options.
The U.S. has not fully reinstated its “maximum pressure” policy but continues to threaten Iran’s oil exports, currently at 1.5 million barrels per day.
Tighter restrictions could push global oil prices higher, contradicting Washington’s goal of keeping energy costs low. A sharp drop in Iranian exports and rising OPEC+ production are already shifting Asia’s energy trade.
Despite sanctions, Iran increased its oil exports to 1.5 million barrels per day in January, the highest since May 2024. Analysts suggest Tehran anticipated U.S. actions and boosted shipments ahead of time.
Jorge León, Head of Geopolitical Analysis at Rystad Energy, believes the sanctions send a strong message. However, he questions whether they will force Iran back to negotiations.
With oil prices near $70 per barrel and OPEC+ maintaining supply, Washington may tighten restrictions without triggering a major supply crisis. As tensions rise, global energy markets face possible disruptions.