The U.S. Treasury Department has imposed sweeping sanctions on a Chinese refinery in Shandong province, accusing it of purchasing over $1 billion worth of Iranian crude oil. According to U.S. officials, the proceeds from these transactions are believed to fund Tehran’s government operations and its support for militant groups. Some of the oil shipments were reportedly linked to a front company associated with Iran’s paramilitary Revolutionary Guard, highlighting the refinery’s alleged role in circumventing international sanctions.
In addition to targeting the refinery, the U.S. Office of Foreign Assets Control (OFAC) also sanctioned multiple companies and vessels involved in the illicit oil trade.These actions are part of a broader strategy. It targets Iran’s so-called “shadow fleet,” a network used to smuggle oil. This defies global restrictions. The move highlights Washington’s ongoing efforts to curb Iran’s energy exports. It aims to limit Iran’s ability to finance destabilizing activities.
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What US Treasury Department said?
“The United States has already penalized dozens of individuals and vessels involved in the shipments. “Any refinery, company, or broker, including Chinese entities, that buys Iranian oil or helps facilitate Iran’s oil trade faces serious risks. The United States is committed to disrupting all actors who support Iran’s oil supply chain. Iran uses this to back its terrorist proxies and partners,” said Treasury Secretary Scott Bessent in a news release.
Iran is accused of supporting militant groups, including Yemen’s Houthis. The Houthis have launched attacks on international shipping. Iran also backs Hezbollah in Lebanon and Hamas in Gaza. During his confirmation hearing earlier this year, Bessent criticised Biden’s sanctions policies. He called for a more “muscular” sanctions system. This should include sanctions on Iran, Russian entities, and oil.
U.S. vows zero tolerance on Chinese purchases of Iranian oil
State Department spokesperson Tammy Bruce said Trump is committed to reducing Iran’s illicit oil exports, including to China, to zero. “As long as Iran seeks oil revenues to fund destabilizing activities, the U.S. will hold Iran and its partners accountable,” Bruce added.
The new sanctions were announced on the same day Iran confirmed talks with the U.S. on Tehran’s nuclear program. These talks would be held in Rome. Liu Pengyu, a spokesperson for China’s embassy in Washington, responded. He stated that the sanctions “undermine international trade, disrupt economic exchanges, and infringe upon the legitimate rights of Chinese companies and individuals.”
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