The United States has announced new sanctions targeting companies in China that it says have helped facilitate the import of large volumes of Iranian oil. The move is part of a broader strategy to apply economic pressure on Iran over its activities in the Middle East and its nuclear program.
According to the U.S. Department of State, two China-based crude oil and petroleum products terminal and storage operators are now subject to sanctions. The Department states these companies have assisted in importing millions of barrels of Iranian-origin oil using vessels previously designated by the United States.
"This action is the Department’s fourth round of sanctions targeting China-based terminal operators, which continue to play a vital role in the Iranian crude oil supply chain," said the Department.
The newly sanctioned companies include QINGDAO PORT HAIYE DONGJIAKOU OIL PRODUCTS CO., LTD (DJK OIL PRODUCTS), which operates in Dongjiakou Port Area, Shandong Province. The port is described as the largest entry point for Iranian crude oil into China by volume. The Department reports that DJK OIL PRODUCTS imported at least 65 million barrels of Iranian-origin crude oil since December 2024, using several vessels already sanctioned by the U.S., with some cargos sold by the National Iranian Oil Company (NIOC), itself previously designated by U.S. authorities.
The second company named is YANGSHAN SHENGANG INTERNATIONAL PETROLEUM STORAGE AND TRANSPORTATION CO., LTD (YANGSHAN SHENGANG), operating in Zhejiang Province's Yangshan Port Area. On March 24, 2025, this company received a shipment from TURACO (IMO 9247780), a vessel designated by the United States, which delivered more than half a million barrels of Iranian crude oil marketed by NIOC. Between April 2024 and March 2025, YANGSHAN SHENGANG reportedly received at least six shipments totaling over four million barrels of Iranian-origin crude oil and hosted other U.S.-designated vessels during that period.
These actions are taken under National Security Presidential Memorandum-2, which directs maximum economic pressure on Iran. As a result, all property and interests in property belonging to these entities within U.S. jurisdiction are blocked and must be reported to the Treasury’s Office of Foreign Assets Control (OFAC). Entities owned 50 percent or more by blocked persons are also subject to these measures.
"All transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked persons are prohibited unless authorized by a general or specific license issued by OFAC or exempt," according to the Department. "These prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any blocked person and the receipt of any contribution or provision of funds, goods, or services from any such person."
The Department emphasized that "the power and integrity of U.S. government sanctions derive not only from the U.S. government’s ability to designate and add persons to the Specially Designated Nationals and Blocked Persons (SDN) List, but also from its willingness to remove persons from the SDN List consistent with the law." It added: "The ultimate goal of sanctions is not to punish, but to bring about a positive change in behavior."
Petitions for removal from these lists can be submitted via email as detailed on official guidance pages provided by OFAC and the State Department.
