The U.S. Department of State has announced sanctions against Huaying Huizhou Daya Bay Petrochemical Terminal Storage, a Chinese oil terminal, for purchasing and storing Iranian crude oil from a sanctioned vessel. This move is part of ongoing efforts to exert maximum pressure on Iran.
Simultaneously, the Department of the Treasury is sanctioning Shandong Shouguang Luqing Petrochemical Co., Ltd., a Chinese "teapot" refinery, for refining substantial quantities of Iranian crude oil. This includes oil sourced from vessels associated with Ansarallah (Houthis), recognized as a Foreign Terrorist Organization, and the Iranian Ministry of Defense of Armed Forces Logistics (MODAFL). "Teapot" refineries in China are known for being significant buyers of Iranian oil. This marks the first time the United States has targeted such a refinery.
Additionally, the Department of the Treasury is imposing sanctions on 12 entities and one individual while identifying eight vessels as blocked property due to their involvement in transporting millions of barrels of Iranian oil to China. These vessels are part of Iran's "shadow fleet," which supplies teapot refineries like Luqing Petrochemical.
These actions align with President Trump's strategy to reduce Iran's oil exports to zero, particularly those sent to China, which remains the largest importer. The revenue generated by these sales allegedly funds attacks on U.S. allies and supports global terrorism.
The Trump Administration intends to enforce these new sanctions rigorously under its maximum pressure campaign. The aim is to hold Iran accountable as long as it seeks to fund destabilizing activities through oil revenues.
The Department of State's action falls under Executive Order 13846, which reimposes certain sanctions related to Iran. Concurrently, the Department of the Treasury's measures are based on Executive Order 13902 targeting Iran’s petroleum and petrochemical sectors. This represents the fourth series of sanctions aimed at curbing Iranian oil sales since National Security Presidential Memorandum 2 was issued on February 4, 2025.
Further details can be found in the fact sheets released by both departments.
