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The Trump administration has implemented sanctions on a Chinese refinery for its purchase of Iranian crude oil, as part of efforts to increase pressure on Tehran by urging Beijing to curb its oil imports from Iran.
The Treasury department singled out Shandong Shengxing Chemical for allegedly buying over $1bn worth of Iranian crude oil from sources linked to a front company for Iran’s Islamic Revolutionary Guard Corps, in violation of US sanctions.
This action marks the second instance in a month where President Donald Trump has imposed sanctions on a “teapot” refinery — a term used for independent Chinese refineries that are major purchasers of Iranian crude oil.
Scott Bessent, the Treasury secretary, warned, “Any refinery, company, or broker that chooses to purchase Iranian oil or aid in Iran’s oil trade is putting themselves at significant risk.”
He added, “The United States is dedicated to disrupting all entities that provide support to Iran’s oil supply chain, which the regime uses to assist its terrorist allies and partners.”
In addition to the refinery sanctions, the Treasury department also imposed sanctions on various companies and vessels for their role in facilitating Iran’s oil transportation to China using ships from a “shadow fleet” that aim to evade detection.
These latest sanctions represent the sixth round of measures imposed by Trump on Iran as part of his “maximum pressure campaign.”
Simultaneously, tensions between Washington and Beijing have heightened due to an ongoing trade war initiated by Trump in January and escalated in recent weeks, with the US imposing a 145% tariff on Chinese imports, to which China responded with a 125% tariff on American goods.
The Trump administration has intensified pressure on China regarding its procurement of Iranian crude oil. The Biden administration faced criticism from Republicans for not exerting more pressure on Beijing to cease importing oil from Iran in violation of US sanctions.
Dennis Wilder, a former White House Asia adviser under President George W. Bush, stated that former President Joe Biden ignored China’s purchase of up to 90% of Iran’s oil exports out of concern that a complete embargo on Iran would lead to a sharp increase in oil prices, affecting US consumers.
Wilders remarked, “Chinese oil purchases have fostered a strong relationship between Tehran and Beijing, allowing China to gain enhanced commercial access in the region.”
The recent sanctions coincide with the Trump administration’s negotiations with Tehran to address Iran’s nuclear program, raising hopes for progress in resolving one of the Middle East’s most challenging issues.
Trump’s special envoy, Steve Witkoff, engaged in indirect talks with Iranian Foreign Minister Abbas Araghchi in Oman, with plans for a follow-up discussion this upcoming Saturday.
Liu Pengyu, spokesperson for the Chinese embassy in Washington, denounced the US use of unilateral sanctions and “long-arm jurisdiction,” asserting that such actions disrupt international trade norms and infringe upon the legitimate rights of Chinese entities.