US Sanctions Chinese Refinery, Terminals and Captains Targeting Iranian Oil
The U.S. Department of the Treasury’s Office of Foreign Assets Control rolled out a further wave of sanctions again targeting Iran’s exports of crude oil and products to China, which remains the country’s largest buyer. In addition to sanctioning a third, independent Chinese oil refinery and six more tankers, the U.S. for the first time targeted terminal operators in China’s Shandong Province and two tanker captains it linked to the shadow fleet.
In February, Donald Trump launched his “maximum pressure” campaign and has repeatedly made threats to drive Iran’s oil exports to zero. Last week, Trump expanded the threats, writing on social media that the U.S. would impose secondary sanctions on buyers and would prevent the companies supporting Iran’s oil trade from doing business in the United States.
Iran has reiterated that it would continue the exports and grow its oil business. This was supported by data from commodity analytics firms Kpler and Vortexa that show Iran is currently exporting as much as 1.5 million barrels of crude oil per day.
Today’s action targeted the third so-called “teapot” oil refinery just seven weeks after the administration sanctioned the first of these Chinese operators. These independent refineries are reported to purchase the majority of Iran’s oil exports. The U.S. is now listing the Hebei Xinhai Chemical Group, reporting that it has received multiple shipments and linking it to sanctioned tankers Urgane I and Hornet, which the U.S. says made deliverers of Iranian oil to the refinery.
Treasury is also targeting three firms for operating a port terminal at Dongying Port, China, which has received several shipments of Iranian oil from shadow fleet vessels since 2024. It cites the facility for receiving more than one million barrels of Iranian oil from shadow tankers, including the previously sanctioned Corona Fun, Viola, Seasky, and CH Billion. It is the first time the U.S. has listed terminal operators in the province.
Six additional tankers, Star Twinkle 6, Lamd, Skadi, Big Mag, Impalas, and Thane, were also added to the list. Four of the tankers are reported to be registered in Panama, and one each in São Tomé and Príncipe and San Marino. The U.S. cites examples of shipments as well as illegal ship-to-ship transfers, often to other sanctioned vessels.
OFAC also designated two Indian nationals who it reports are working as the captain of sanctioned vessels. They allege that Lincoln Francisco Viegas has served since 2022 as master of two tankers transporting Iranian oil. Ketan Agarwal, the U.S. says, has served since 2017 as master of several vessels transporting Iranian oil.
Reuters is reporting today that the U.S.’s two prior efforts to sanction the Chinese “teapot” refineries are having an impact on the operations. The report says that sources told them the refineries are having problems receiving shipments and selling products. Trump has vowed to continue to increase the pressure until Iran agrees to a deal in the current nuclear talks and stops supporting its proxies across the Middle East.