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The US has imposed sanctions on two Chinese petrochemical groups allegedly importing Iranian crude oil on Salvo, the latest in President Donald Trump’s “maximum pressure” campaign on the Islamic Republic.
The State Department said it had sanctioned Petrochemical Terminal Storage on Huizhou Daya Bay bay for violating US sanctions by purchasing and storing Iranian crude oil that had already been shipped to China by ship under sanctions.
The Ministry of Finance has separately posted sanctions on Chinese refinery luqing Petrochemical for purchasing Iranian crude oil transported by ships associated with the Housis and Iranian military.
The Treasury said sanctions against Luqing Petrochemical were the first time Washington has imposed such penalties on a “teapot” refinery.
“The purchase of Iran’s oil teapot refineries provides the major economic lifeline of the Iranian regime, the world’s leading national sponsor,” said U.S. Treasury Secretary Scott Bescent. “The US is committed to cutting off revenue streams that allow for continued funding for Tehran’s terrorism and the continued funding of its nuclear program.”
Trump wrote a letter this month to Iran’s top leadership, urging him to reach a deal with the United States in his nuclear program. If Tehran disagrees with diplomatic efforts, but Iran has not responded to the overture, he threatens “bad” outcomes.
Last month, Trump said he was redesigning his “maximum pressure” campaign on Iran. The goal is to force Iran to the negotiation table on more favorable terms, even though it is not clear whether Tehran is interested in doing so.
Iran’s crude oil exports have been in excess of 1.5 million barrels over the past four years, from 400,000 barrels a day to 150,000 barrels a day to 150,000 barrels a day, with almost all shipments being made to China, according to the latest information from the US energy intelligence agency.
Iran, a member of the OPEC oil export cartel, estimates its total production capacity at approximately 3.8 million b/d. China, the world’s largest buyer of foreign crude oil, imported around 11 million b/d last year.
Iranian hardliners have worked to undermine the country’s reformist President Masuud Pezeshkian and prevent negotiations with the United States. Trump tapped his special envoy Steve Witkov to oversee the Iranian files and his team has started some work, but diplomats say Trump has not yet designated a person in the daily point for this issue.
“As long as Iran is trying to fund destabilizing activities and generate oil revenue, the US will hold both Iran and its partners shunning all its sanctions,” said State Department spokesman Tammy Bruce.
The US said the sanctions are part of a gradual campaign designed to eliminate Iran’s oil exports, including China.
The Treasury said it was sanctioning 19 other entities, including owners in China and Hong Kong, which are part of the “shadow fleet” of vessels that supply refineries in China.
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The US is concerned about cooperation between Tehran and Beijing on everything from oil supply to Chinese exports to Chinese exports that promote Iran’s arms development.
The Financial Times reported in January that two Iranian ships carrying chemical components for missile propellants were preparing to sail from China to Iran the following week. The first Iranian-owned ship, known as the Gorbon, later departed from China and later arrived at Bandar Abbas, a port in southern Iran on the Gulf.
The Chinese Embassy did not immediately respond to requests for comment on the new sanctions.
