US Intensifies Iran Oil Sanctions, Targets Chinese Refiner

The U.S. Treasury Department on Tuesday (local time) ramped up pressure on Iran's oil exports by sanctioning dozens of vessels, including Chinese refiner Hengli Petrochemical, involved in evading Iran sanctions. The U.S. Treasury's Office of Foreign Assets Control (OFAC) announced sanctions against Chinese refiner Hengli Petrochemical and dozens of ships linked to Iran sanctions.

The measures are intended to block revenue from oil sales, a key source of income for the Iranian regime, with the U.S. Treasury Secretary describing it as part of a campaign to impose a 'financial stranglehold' on the regime. These sanctions are part of an effort to choke off Iran's oil sales revenue.

The U.S. confirmed that since 2023, Hengli Petrochemical had received Iranian crude oil from sanctioned 'shadow fleet' tankers, and Hengli Petrochemical is estimated to have provided hundreds of millions of dollars in revenue to the Iranian military. Hengli Petrochemical also received shipments related to Sepehr Energy Jahan Nama Pars Company, which U.S. officials have identified as a shell company for the Iranian military.

U.S. Treasury Secretary Scott Bessent stated that these actions are placing a 'financial squeeze' on the Iranian regime.