US Treasury blacklists Hengli Petrochemical
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- US Treasury blacklisted Hengli Petrochemical on April 24, adding the firm to the U.S. sanctions list for alleged ties to Iran.
- Hengli Petrochemical denied the accusations, stating it never traded with Iran and holds three months of crude inventory.
- Asian petrochemical buyers cancelled orders with Hengli, scrambling for alternative supplies after the sanction.
- Liao Na warned the move is a bargaining chip ahead of President Trump’s May Beijing visit, urging Tehran to negotiate.
- Erica Downs called the sanction an escalation, noting private refiners represent about one‑third of China’s refining capacity.
Why it matters: Chinese refiners lose a third of capacity to process Iranian oil, while the US leverages sanctions before Trump's May Beijing visit, forcing Asian buyers to scramble for alternatives and tightening global oil supply.
