US Issues New Sanctions on Chinese Companies Importing Iranian Oil
New sanctions have been issued that are taking aim at Iran’s oil exports, as President Donald Trump and his administration are seeking to put more pressure Tehran. According to Reuters , the sanctions include a…
New Sanctions have been issued that are taking aim at Iran’s oil exports, as President Donald Trump and his administration are seeking to put more pressure Tehran.
According to Reuters, the Sanctions include a China-based “teapot” oil Refinery defined as a small and independent Refinery.
In a statement, the Treasury Department said the Sanctions would increase pressure on Chinese importers of Iranian Oil. Trump has said he wants to increase “maximum pressure” on Iran in an effort to drive its exports to zero.
Reuters further reported that the administration has relaunched its negotiations with Iran over its plans to expand its nuclear program. Trump also held talks with Oman last weekend and is expected to have a second discussion while in Rome, Italy, this weekend.
The teapot Refinery has been accused of purchasing more than $1 billion worth of Iran’s oil. While the U.S. has not put focus on these refineries in the past, Reuters reports Chinese state-owned oil firms have stop purchasing the oil to avoid violating Sanctions.
Additional Sanctions were added on several other Chinese companies who have been accused of being part of Iran’s “shadow fleet,” secretly facilitating Iranian Oil shipments.
Spokesperson Liu Pengyu for the Chinese Embassy based in Washington said the U.S. is suppressing Chinese entities and individuals and added that China will take “necessary steps” to safeguard itself.
“China will take necessary steps to safeguard its legitimate rights and interests,” Liu said in a statement.
Treasury Secretary Scott Bessent said in the statement that any company that purchases Iran’s oil puts themselves at “serious risk.”
“Any Refinery, company, or broker that chooses to purchase Iranian Oil or facilitate Iran’s oil trade places itself at serious risk,” Bessent said. “The United States is committed to disrupting all actors providing support to Iran’s oil supply chain, which the regime uses to support its terrorist proxies and partners.”
The department has also updated its guidelines for shipping and maritime stakeholders, warning that Iran depends on a shadow fleet to disguise shipments.
However, China does not officially recognize the U.S. Sanctions and imports more Iranian Oil than any other country, using Chinese yuan and middlemen to avoid U.S. regulators.