US sanctions Chinese refinery in expanded Iran oil crackdown, targets ‘shadow fleet’ tankers

(SeaPRwire) –   The U.S. Treasury’s Office of Foreign Assets Control (OFAC) imposed sanctions on Friday against a significant Chinese oil refinery and numerous vessels associated with Iran’s “shadow fleet,” intensifying a push to sever Tehran’s principal income stream.

In a statement, officials stated the action focuses on Hengli Petrochemical, a top purchaser of Iranian oil, as well as a web of shipping firms and tankers that move petroleum products valued in the billions of dollars to international markets.

The Treasury Department described these “shadow fleet” ships as the crucial financial support for Iran’s “unstable regime.”

This enforcement is a component of the Economic Fury initiative, a wider strategy to pressure Iran’s economy by restricting its overseas oil sales, income which the U.S. claims finances the regime’s military and disruptive actions in the Middle East.

“Economic Fury is applying a financial chokehold on the Iranian regime, impeding its aggression in the Middle East and aiding in restraining its nuclear ambitions,” stated Treasury Secretary Scott Bessent.

Hengli Petrochemical (Dalian) Refinery Co. is a Chinese “teapot” refinery, a label for independent plants recognized for buying cut-price crude oil, sometimes from nations under sanctions.

This refinery, among China’s biggest independent operators, has been taking deliveries of Iranian oil from sanctioned shadow fleet tankers since at least 2023. Hengli has also bought oil connected to Iran’s armed forces, producing hundreds of millions in revenue for the Iranian military.

Hengli has additionally accepted shipments linked to Sepehr Energy Jahan Nama Pars Company, an entity U.S. authorities have designated as a cover for Iran’s armed forces that assists in enabling foreign oil sales.

The firm acts for Iran’s Armed Forces General Staff, employing a system of middlemen and ships to transport sanctioned crude, with the profits aiding the funding of the nation’s military initiatives and regional proxy forces.

The fresh sanctions also aim at the system enabling these oil transactions: a “shadow fleet” comprising older tankers and shell corporations that shuttle petroleum worldwide while dodging sanctions and concealing shipment origins.

These vessels elude discovery by moving cargo between tankers at sea. Treasury officials reported that 19 ships were designated in this measure.

This step forms part of the Trump administration’s revived “maximum pressure” strategy on Iran, intended to block the regime’s chief revenue source from oil exports through sanctions enforcement.

U.S. authorities state oil exports continue to be the foundation of Iran’s economy, and measures to constrain these shipments are meant to reduce the government’s capacity to finance its military, back proxy groups, and progress its nuclear agenda.

Treasury officials cautioned that more sanctions are probable as the U.S. persists in focusing on the networks, intermediaries, and purchasers that allow Iran to market its oil globally.