Trump administration imposes sanctions on Chinese firms linked to Iran oil

U.S. sanctions target Iran trade

The United States imposed sanctions on roughly 100 individuals, entities, and vessels, including a Chinese independent refinery and terminal that facilitated Iran's oil and petrochemical trade, the administration of President Donald Trump announced on Thursday.

The Treasury Department targeted the Shandong Jincheng Petrochemical Group, described as an independent teapot refinery in Shandong Province that has purchased millions of barrels of Iranian oil since 2023.

Also sanctioned was the China-based Rizhao Shihua Crude Oil Terminal, which operates at Lanshan Port. Treasury said the terminal has accepted more than a dozen vessels from Iran’s so-called shadow fleet, which evade sanctions. These tankers included Kongm, Big Mag, and Voy, which transported several million barrels of Iranian oil to Rizhao.

The U.S. maintains that Iran’s oil networks finance Tehran’s nuclear and missile programs and support militant proxies across the Middle East, while Iran asserts its nuclear programme is solely for peaceful purposes.

The sanctions coincide with Israel and Hamas signing a Gaza ceasefire and hostage deal, which, if fully implemented, would bring the two sides closer than any prior effort to halt a war that has drawn in regional actors including Iran, Yemen, and Lebanon.

This marks the fourth round of sanctions targeting China-based refineries continuing to purchase Iranian oil. “The Treasury Department is degrading Iran's cash flow by dismantling key elements of Iran's energy export machine,” said Treasury Secretary Scott Bessent.

At a Cabinet meeting following the sanctions announcement, Trump said Iran expressed support for the Israel-Hamas ceasefire and hostage deal, and that the U.S. would coordinate with Tehran. “We'd like to see them be able to rebuild their country too, but they can't have a nuclear weapon,” Trump said, adding that he will be travelling to the Middle East soon.

Despite repeated U.S. sanctions, Iran continues to export substantial amounts of oil. United Against a Nuclear Iran (UANI), which monitors the country’s petroleum shipments, reported that September exports reached a yearly high of about 63.2 million barrels, valued at approximately $4.26 billion. UANI attributed the growth to stockpiling ahead of the resumption of U.N. sanctions on Iran.

The State Department also designated Jiangyin Foreversun Chemical Logistics, a China-based terminal, for receiving Iranian-origin petrochemical products.

Neither the Chinese embassy in Washington nor Iran’s mission to the United Nations in New York immediately responded to requests for comment.

(With Reuters Inputs)