The United States has imposed sweeping sanctions on Hengli Petrochemical (Dalian) Refinery Co., Ltd., a major China-based buyer of Iranian crude oil, along with nearly 40 shipping firms and vessels accused of facilitating Iran’s “shadow fleet.” The Treasury Department said Hengli has purchased billions of dollars’ worth of Iranian petroleum, generating hundreds of millions in revenue for Iran’s military through intermediaries such as Sepehr Energy Jahan Nama Pars Company. Treasury Secretary Scott Bessent described the move as a financial stranglehold aimed at curbing Tehran’s aggression in the Middle East and limiting its nuclear ambitions. The sanctions, taken under Executive Order 13902, block all property and interests of designated entities within US jurisdiction and prohibit transactions involving them.
Officials noted that China’s independent “teapot” refineries are among the largest buyers of Iranian oil, with Hengli identified as the second-largest. The sanctions also targeted 19 vessels flagged under jurisdictions including Panama, Hong Kong, and Barbados, accused of transporting billions of dollars in Iranian crude, LPG, and petrochemicals to destinations such as China, the UAE, and Bangladesh. These ships allegedly engaged in ship-to-ship transfers to conceal the origin of the oil. Since February 2025, the US has sanctioned more than 1,000 Iran-related individuals, entities, vessels, and aircraft, underscoring Washington’s broader campaign to choke off Tehran’s energy revenues. The Treasury warned that foreign institutions facilitating such trade risk civil or criminal penalties, intensifying global pressure on Iran’s oil exports.