US Sanctions Two Chinese Petrochemical Firms for Importing Iranian Oil

New Delhi: The United States has sanctioned two Chinese petrochemical groups for allegedly importing Iranian crude oil, marking another move in President Donald Trump ’s "maximum pressure" campaign on Iran.

The State Department sanctioned Huaying Huizhou Daya Bay Petrochemical Terminal Storage for violating U.S. sanctions by purchasing and storing Iranian crude oil on a ship already under sanctions. Meanwhile, the Treasury Department imposed sanctions on Chinese refiner Luqing Petrochemical for buying Iranian crude oil transported on vessels connected to the Houthis and the Iranian military.

US Sanctions China for Importing Iranian Oil

The Treasury targeted China-based Shandong Shouguang Luqing Petrochemical Co., Ltd. for sanctions. State Department spokesperson Tammy Bruce said that the refinery purchased oil from vessels linked to Yemen’s Iran-aligned Houthi movement, recently designated by the U.S. as a Foreign Terrorist Organization, as well as the U.S.-designated Iranian Ministry of Defense and Armed Forces Logistics.

The Treasury also imposed sanctions on 12 entities and identified eight vessels as blocked property, claiming they were responsible for shipping millions of barrels of Iranian oil to China. These vessels are part of Iran’s “shadow fleet” that supplies private refineries.

Additionally, the Treasury placed Wang Xueqing, linked to the refinery, on the Specially Designated Nationals (SDN) list. Americans are prohibited from doing business with those on the list, and their U.S. assets are blocked.

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US Treasury Secretary Scott Bessent said, “Teapot refinery purchases of Iranian oil provide the primary economic lifeline for the Iranian regime, the world’s leading state sponsor of terror." he added "The United States is committed to cutting off the revenue streams that enable Tehran’s continued financing of terrorism and development of its nuclear programme.”

Earlier, Trump wrote to Iran's Supreme Leader, urging a deal on Iran's nuclear program. He warned of “terrible” consequences if Tehran does not engage in diplomatic talks, but Iran has yet to respond.

Last month, Trump announced he was reimposing his “maximum pressure” campaign on Iran, including sanctions on entities shipping Iranian oil to China. The aim is to force Iran to the negotiating table under terms more favorable to the U.S., though it remains uncertain if Tehran is willing to engage.

(with AP inputs)