-- The US Treasury sanctioned a China-based refinery and about 40 vessels as part of its Iran oil crackdown, expanding pressure on Tehran's energy revenue, it said Friday.
The Office of Foreign Assets Control targeted Hengli Petrochemical refinery, a major buyer of Iranian crude that has purchased billions of dollars in oil products, Treasury said.
US officials said independent Chinese "teapot" refineries play a key role in sustaining Iran's oil exports by purchasing large volumes of crude from the country.
Hengli, based in Dalian and China's second-largest teapot refinery, has received shipments from sanctioned vessels, including BIG MAG, GALE, and ARES, which together have delivered over 5 million barrels of crude since 2023, Treasury said.
The refinery has also processed oil linked to Iran's Armed Forces through Sepehr Energy Jahan Nama Pars, generating hundreds of millions of dollars for the military, the Treasury added.
Treasury said the measures fall under Executive Order 13902 and support its broader campaign to curb Iran's oil trade, money laundering, and sanctions evasion networks.
Since February 2025, the agency has sanctioned more than 1,000 individuals, vessels, and aircraft connected to Iran as part of its maximum pressure strategy, Treasury added.
The latest action also targets Iran's shadow fleet, which links producers to buyers in Asia and helps sustain the country's oil exports despite sanctions, according to the Treasury.
OFAC sanctioned 19 vessels involved in transporting billions of dollars in crude oil, liquefied petroleum gas, and petrochemical products to foreign markets, the Treasury added.
Treasury Secretary Scott Bessent said, "Economic Fury is imposing a financial stranglehold on the Iranian regime, hampering its aggression in the Middle East, and helping to curtail its nuclear ambitions."