The United States has imposed strict sanctions on Shandong Shengxing Chemical Co., Ltd, a Chinese independent "teapot" refinery, for purchasing over $1 billion worth of Iranian crude oil. This action, announced on April 16, 2025, is part of Washington’s ongoing campaign to halt Iran’s illicit oil exports, with a particular focus on curbing transactions involving China.

The sanctions also extend to several companies and vessels that facilitate the transport of Iranian oil to China, targeting what the U.S. describes as Iran’s “shadow fleet”.

The U.S. State Department emphasised that this move reflects the President’s commitment to driving Iran’s illegal oil exports to zero. The sanctions are being fully enforced under the Trump administration’s “maximum-pressure” strategy, which aims to cut off revenue streams that Tehran could use to fund destabilizing activities, including the development of its nuclear program, support for regional proxy groups, and other malign actions.

This latest measure marks the second time the U.S. has sanctioned a Chinese teapot refinery for similar activities since the issuance of National Security Presidential Memorandum 2 in February 2025. In March, Shandong Shouguang Luqing Petrochemical Co. was sanctioned for purchasing around $500 million in Iranian oil, illustrating a pattern of enforcement against independent Chinese refiners that have become crucial buyers of Iranian crude and a vital economic lifeline for Iran.

In addition to targeting oil-related transactions, the U.S. has recently tightened export restrictions on advanced technology to China, notably requiring government permission for Nvidia to export its H20 AI chips to the Chinese market. This demonstrates a broader U.S. strategy to exert economic pressure on Beijing amid ongoing trade and technology disputes.

The U.S. government has reiterated that as long as Iran continues to seek oil revenues to fund destabilizing activities, it will hold both Iran and its sanctions-evasion partners accountable. These actions are part of a comprehensive effort to disrupt the financial networks enabling Iran’s oil trade, impacting not just Chinese companies but also entities and vessels across other countries involved in facilitating this trade.

ANI