America Imposes New Sanctions on Chinese Refinery Due to Iranian Oil

Washington Announces New Sanctions on the Oil Sector Linked to Iran

The administration of U.S. President Donald Trump announced on Friday, April 24, 2026, the imposition of sanctions on a small independent oil refinery in China for purchasing Iranian oil worth billions of dollars, coinciding with diplomatic efforts to resume talks aimed at ending the war between Washington and Tehran.

Targeting the "Hengli Petrochemical" Refinery in Dalian

The U.S. Treasury Department, through the Office of Foreign Assets Control (OFAC), targeted the "Hengli Petrochemical (Dalian)" refinery, describing it as one of the largest buyers of Iranian crude oil and petroleum products.

This step is part of a policy to tighten the noose on oil trade networks linked to Iran.

Sanctions Affecting 40 Shipping Companies and Vessels within the "Shadow Fleet"

The Office of Foreign Assets Control also announced sanctions on about 40 shipping companies and vessels operating within what is known as the "Iranian Shadow Fleet," a system that Tehran relies on to transport and export oil indirectly to circumvent international restrictions.

No Comment from China and Its Position on the Sanctions

The Chinese embassy in Washington has not issued any immediate comment on the decision.

China has previously stated its rejection of unilateral sanctions, describing them as "illegal," arguing that they contradict international laws and affect global trade.

Previous Sanctions and Rising Pressure on Chinese Refineries

The Trump administration had imposed similar sanctions last year on other small independent Chinese refineries, causing operational difficulties, including restrictions on receiving crude oil and forcing some to sell refined products through alternative companies to avoid sanctions.

The Role of Independent Chinese Refineries in the Energy Market

Independent small refineries in China account for about a quarter of the country's refining capacity, operating on narrow and sometimes negative profit margins, and have recently also been affected by a decline in domestic demand for fuel and petroleum products.

Data Confirming China's Reliance on Iranian Oil

Data from "Kpler" for 2025 indicates that China purchases over 80% of Iranian oil exports, reflecting the depth of the trade relationship between the two parties despite U.S. sanctions imposed on Tehran.

Impact of Sanctions on Iranian Oil Trade

U.S. sanctions have led some Chinese refining companies to back away from purchasing Iranian oil, as the measures freeze the assets of targeted companies and prevent U.S. citizens and companies from dealing with them entirely.

U.S. Treasury's Position and Intensifying Pressure

U.S. Treasury Secretary Scott Pisent stated that the United States is imposing what he described as a "strangling financial grip" on the Iranian government, emphasizing that the department will continue to target transportation networks, intermediaries, and buyers facilitating the export of Iranian oil.

U.S. Warnings to Chinese Banks Regarding Transactions with Iran

Pisent revealed that the U.S. Treasury had issued warnings to two banks in China, informing them that any evidence of Iranian money flowing through their accounts could lead to secondary sanctions against them, as part of expanding financial pressure on Tehran.

Summary of the Scene: Ongoing Economic Escalation Between Washington and Tehran

These sanctions reflect the continued U.S. escalation in using financial and economic tools to pressure Iran, with the targeting expanding to include shipping companies and intermediary refineries, in an attempt to reduce Tehran's ability to export its oil to global markets.