Washington sanctions Chinese refinery and tankers tied to Iran’s oil network

The United States has announced a new round of sanctions targeting roughly 100 individuals, companies, and vessels accused of helping Iran expand its oil and petrochemical exports.

The move, unveiled Thursday by President Donald Trump’s administration, includes penalties against a Chinese refinery and a major crude oil terminal allegedly tied to the trade.

According to the Treasury Department, the Shandong Jincheng Petrochemical Group—a privately operated “teapot” refinery in China’s Shandong Province—was blacklisted for purchasing millions of barrels of Iranian crude since 2023. Another sanctioned entity, Rizhao Shihua Crude Oil Terminal, was accused of accepting shipments from more than a dozen tankers belonging to Iran’s so-called “shadow fleet,” which Washington says helps Tehran skirt existing sanctions. Among those tankers were the Kongm, Big Mag, and Voy, which reportedly delivered several million barrels of Iranian oil to Rizhao.

U.S. officials contend that Iran’s oil revenues are used to finance its nuclear and missile development programs, as well as militant groups operating across the Middle East. Tehran insists its nuclear work is strictly civilian.

The sanctions announcement coincided with a significant diplomatic moment: a ceasefire and hostage exchange agreement between Israel and Hamas. U.S. officials said the deal—if fully implemented—could mark the most substantial step yet toward ending a regional conflict that has already drawn in Iran, Yemen, and Lebanon.

This marks the fourth round of sanctions by the Trump administration aimed at Chinese refineries accused of continuing to import Iranian oil despite restrictions. Treasury Secretary Scott Bessent said the measures are designed to “cut off Iran’s financial lifelines by dismantling its energy export networks.”

During a subsequent White House cabinet meeting, Trump said Iranian officials had expressed support for the Israel-Hamas ceasefire and that Washington was open to engaging with Tehran. “We’d like to see them rebuild their country,” Trump said, “but they can’t have a nuclear weapon.” He added that he plans to travel to the Middle East soon.

Despite Washington’s sanctions, Iran’s oil exports remain robust. The advocacy group United Against a Nuclear Iran reported that Tehran shipped approximately 63.2 million barrels of crude in September, valued at around $4.26 billion—the highest monthly total so far this year. Analysts believe the increase reflects stockpiling ahead of a possible reinstatement of U.N. sanctions.

The State Department also announced sanctions against Jiangyin Foreversun Chemical Logistics, the first China-based terminal penalized for handling Iranian petrochemical products.

In response, Chinese embassy spokesperson Liu Pengyu criticized the U.S. action, calling it an “abuse of unilateral sanctions” and warning that Beijing would “take all necessary measures to safeguard the legitimate rights and interests of Chinese enterprises.”