U.S. forces board the sanctioned stateless tanker Majestic X in the Indian Ocean during a maritime interdiction operation on April 23, 2026. The vessel, formerly known as Phonix, has been linked to Iran\u2019s shadow oil trade. Photo: Department of War<\/p>\n
U.S. Targets Major Chinese Refinery and Ships in Escalating Crackdown on Iran\u2019s Oil Trade<\/p>\n
The Trump administration on Friday escalated its \u201cEconomic Fury\u201d campaign against Tehran, targeting one of China\u2019s largest independent refineries alongside a new wave of sanctions on vessels and shipping firms accused of moving Iranian oil through the shadow fleet.<\/p>\n
The U.S. Treasury\u2019s Office of Foreign Assets Control sanctioned\u00a0Hengli Petrochemical (Dalian) Refinery Co., described by Treasury as China\u2019s second-largest \u201cteapot\u201d refinery and one of the largest buyers of Iranian crude, while also blacklisting 19 vessels and 18 shipping-related entities tied to Iran\u2019s petroleum trade.<\/p>\n
While OFAC has previously sanctioned four Chinese teapot refiners as part of President Trump\u2019s maximum pressure campaign against Iran, the move against Hengli signals a potentially sharper turn in U.S. pressure strategy, shifting from targeting the ships and intermediaries that move Iranian crude toward the major overseas buyers helping sustain demand.<\/p>\n
\u201cTreasury will continue to constrict the network of vessels, intermediaries, and buyers Iran relies on to move its oil to global markets,\u201d Treasury Secretary Scott Bessent said in a statement.<\/p>\n
The sanctions package suggests Washington is attempting to tighten pressure not just on transport routes, but on the commercial entities underpinning Iranian exports.<\/p>\n
Previous rounds of \u201cEconomic Fury\u201d sanctions largely focused on tankers, ship managers, traders and facilitators tied to Iran\u2019s shadow fleet. Friday\u2019s action reaches further up the value chain, targeting a major refining buyer Treasury says has purchased billions of dollars in Iranian crude and petroleum products.<\/p>\n
Treasury alleged Hengli has received cargoes from multiple sanctioned tankers and purchased oil linked to\u00a0Sepehr Energy, described by U.S. authorities as associated with Iran\u2019s Armed Forces General Staff.<\/p>\n
Alongside Hengli, OFAC designated 19 tankers accused of transporting billions of dollars\u2019 worth of Iranian crude, LPG and petrochemical cargoes, including vessels allegedly delivering cargoes into China, the UAE and Bangladesh.<\/p>\n
Among those targeted were the tankers<\/p>\n
, part of what Treasury called a network sustaining \u201cthe lifeblood\u201d of Iran\u2019s economy.<\/p>\n
The package also sanctioned shipping companies tied to Hong Kong, the Marshall Islands, Panama, the UAE and elsewhere, underscoring the multinational ownership and flag structures often associated with shadow fleet trading.<\/p>\n
The measures were issued under\u00a0Executive Order 13902, which targets Iran\u2019s petroleum and petrochemical sectors.<\/p>\n
Friday\u2019s measures also come as Washington is simultaneously tightening pressure at sea, underscoring that U.S. strategy is increasingly combining financial sanctions with physical disruption of Iranian-linked trade.<\/p>\n
Even as Treasury targets the buyers and shipping networks sustaining Iranian exports, U.S. naval forces have expanded blockade enforcement tied to the broader confrontation with Tehran, including vessel interdictions, turn-backs and high-profile seizures that have become a central issue in ongoing negotiations.<\/p>\n
Since February 2025, Treasury says it has sanctioned more than 1,000 Iran-related persons, vessels and aircraft under the broader campaign.<\/p>\n
For shipping markets, the question now is whether the U.S. blockade and sanctions can meaningfully disrupt flows\u2014or simply force them deeper into the opaque networks that have thus far kept Iranian barrels moving.<\/p>\n