On Thursday, the U.S. Treasury Department imposed new sanctions targeting entities linked to Iran’s oil trade. Among those sanctioned for the first time were a Chinese “teapot” refinery—Shandong Shouguang Luqing Petrochemical Co., Ltd.—and vessels that supplied crude oil to these refineries.
This marks the fourth round of sanctions imposed by the U.S. on Iran’s oil sales since President Donald Trump announced the reimposition of a “maximum pressure” campaign in February. The goal of this strategy is to curb Iran’s ability to acquire nuclear weapons and prevent the country from funding militant groups. The sanctions reflect Washington’s ongoing efforts to reduce Iran’s oil exports, with a long-term objective of pushing them to zero.
The Treasury’s sanctions specifically targeted Shandong Shouguang Luqing Petrochemical Co., Ltd., a Chinese refinery. The U.S. State Department indicated that the refinery had purchased crude oil from vessels associated with Yemen’s Iran-aligned Houthi movement, which the U.S. recently designated as a foreign terrorist organization. The targeted refinery also had dealings with the Iranian Ministry of Defence and Armed Forces Logistics, which has been sanctioned by the U.S. for its involvement in Iran’s military and weapons programs.
China, the world’s largest importer of Iranian oil, has long been a key player in the trade of Iranian crude. The so-called “teapot” refineries in China are private facilities that are major buyers of Iranian oil, often circumventing sanctions by purchasing crude from Iran, despite ongoing U.S. pressure to halt these activities.
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