U.S. Treasury Sanctions Chinese Oil Refinery, 19 Entities Over Iranian Oil Links

The U.S. Treasury Department has intensified sanctions against Iranian oil trade, targeting the Shandong Shouguang Luqing Petrochemical Co., a Chinese 'teapot' refinery, and its CEO for purchasing approximately $500 million in Iranian crude oil linked to terrorist organizations. This enforcement action includes sanctions on 19 entities and vessels associated with Iran's so-called 'shadow fleet' of tankers, aimed at disrupting the revenue streams that finance Iran's nuclear program and terrorism. Treasury Secretary Scott Bessent highlighted that these actions are part of a broader 'maximum pressure' campaign initiated under the Trump administration. The sanctions have already impacted crude oil prices, with notable increases in market rates. Additionally, the Treasury aims to block illicit Iranian oil trades with China and India, emphasizing that the proceeds from such trades support various militant groups and Iran's military operations. Iran's Foreign Minister has indicated that Tehran will respond to the U.S. sanctions through diplomatic channels, asserting that negotiations must occur without pressure.