US Sanctions China Refinery, 40 Shippers Over Iran Oil
SkimNews Take
Secondary sanctions on a Chinese refinery for Iranian oil sales reveal the U.S. strategy to target critical demand nodes, not just supply, to disrupt sanctioned economies.
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- U.S. Treasury announced secondary sanctions that bar 40 shipping firms and tankers from U.S. financial services for moving Iranian oil.
- Hengli Petrochemical in Dalian, a 400,000‑bbl‑per‑day refinery, has been receiving Iranian crude since 2023, generating hundreds of millions of dollars for the Iranian military.
- Scott Bessent warned that any banks in China, Hong Kong, the UAE or Oman that process Iranian oil money will face secondary sanctions.
- United Against Nuclear Iran reported in February 2025 that Hengli is among dozens of Chinese firms buying Iranian oil, underscoring China's 80‑90% share of Iran's oil exports.
- Strait of Hormuz was physically blocked by the U.S. this month, tightening global energy supplies and amplifying the impact of the new sanctions on oil markets.
Why it matters: Iranian military loses hundreds of millions in oil revenue as Hengli Petrochemical and 40 shippers are cut off from U.S. finance, while the U.S. gains leverage; the move tightens global oil supply and pushes prices higher.
