US Sanctions Entities Tied to Iran–China Petroleum Trade

It’s the first time the United States has sanctioned what is called a ’teapot refinery,' which mainly buys oil from Iran.

An oil tanker seized by Iranian naval forces at the Gulf port of Bandar Abbas in southern Iran, on Oct. 31, 2022. IRNA/AFP via Getty Images

The Trump administration announced on March 20 that it has sanctioned entities it says are tied to the petroleum trade between Iran and China.

The Department of State sanctioned an oil facility in China, Huaying Huizhou Daya Bay Petrochemical Terminal Storage, which has allegedly bought and sold Iranian crude oil from a vessel under U.S. sanctions.

“These sanctions are being imposed pursuant to President [Donald] Trump’s maximum pressure campaign to drive Iran’s oil exports, including to China, to zero,” State Department spokesperson Tammy Bruce said in a statement.

“China is by far the largest importer of Iranian oil. The Iranian regime uses the revenue it generates from these sales to finance attacks on U.S. allies, support terrorism around the world, and pursue other destabilizing actions.”

Meanwhile, the Treasury Department sanctioned Shandong Shouguang Luqing Petrochemical Co.