US Sanctions Entities Tied to Iran–China Petroleum Trade

It’s the first time the United States has sanctioned what is called a ’teapot refinery,' which mainly buys oil from Iran.

An oil tanker seized by Iranian naval forces at the Gulf port of Bandar Abbas in southern Iran, on Oct. 31, 2022. IRNA/AFP via Getty Images

The Trump administration announced on March 20 that it has sanctioned entities it says are tied to the petroleum trade between Iran and China.

The Department of State sanctioned an oil facility in China, Huaying Huizhou Daya Bay Petrochemical Terminal Storage, which has allegedly bought and sold Iranian crude oil from a vessel under U.S. sanctions.

“These sanctions are being imposed pursuant to President [Donald] Trump’s maximum pressure campaign to drive Iran’s oil exports, including to China, to zero,” State Department spokesperson Tammy Bruce said in a statement.

“China is by far the largest importer of Iranian oil. The Iranian regime uses the revenue it generates from these sales to finance attacks on U.S. allies, support terrorism around the world, and pursue other destabilizing actions.”

Meanwhile, the Treasury Department sanctioned Shandong Shouguang Luqing Petrochemical Co.

The oil refinery in China has allegedly bought and refined “hundreds of millions of dollars’ worth of Iranian crude oil” from vessels tied to the Houthis, a terrorist organization, and the Iranian Ministry of Defense of Armed Forces Logistics, which is sanctioned by the United States.

The company’s chief executive officer, Wang Xueqing, was also sanctioned.

This is the first time the United States has sanctioned what is called a “teapot refinery,” which mainly buys oil from Iran.

“Teapot refinery purchases of Iranian oil provide the primary economic lifeline for the Iranian regime, the world’s leading state sponsor of terror,” Treasury Secretary Scott Bessent said in a statement.

“The United States is committed to cutting off the revenue streams that enable Tehran’s continued financing of terrorism and development of its nuclear program.”

The Treasury Department also imposed sanctions on 19 other entities tied to petroleum sales between Iran and China.

Companies under sanctions will have their assets in the United States frozen.