US sanctions Chinese refinery over Iranian oil imports

Shafaq News/ On Friday, the United States imposed sanctions on a Chinese refinery and several related entities for importing Iranian crude oil, the State Department said, in a move aimed at reinforcing Washington’s “maximum pressure” campaign against Tehran.

“The Department of the Treasury is concurrently sanctioning China-based Shandong Shouguang Luqing Petrochemical Co., Ltd., a ‘teapot’ oil refinery, for purchasing and refining hundreds of millions of dollars’ worth of Iranian crude oil,” the department said, adding that private “teapot” refineries are the primary purchasers of Iranian oil in China.

Traders told Reuters the measures are expected to slow, but not stop, Chinese imports of Iranian oil. Shipments are likely to decline in the short term due to increased freight costs and the risk of secondary sanctions on shipping companies. However, some flows may continue as alternative arrangements are explored to bypass restrictions.

During his presidency, Donald Trump reinstated the maximum pressure campaign against Iran, reimposing sanctions on key sectors and blacklisting officials, including the oil minister.