On Thursday, the Treasury Department imposed sanctions on a Chinese oil refiner and port operators accused of facilitating shipments of Iranian crude oil, intensifying economic pressure ahead of key trade talks with China on Saturday, Axios reported.
The move comes days after President Donald Trump threatened to penalize any entity purchasing oil from Iran — a warning widely seen as directed at Beijing and its commercial partners.
"The United States remains resolved to intensify pressure on all elements of Iran's oil supply chain to prevent the regime from generating revenue to further its destabilizing agenda," Treasury Secretary Scott Bessent said in a statement.
The sanctions hit Hebei Xinhai Chemical Group, a Chinese oil refiner, and three firms that operate a terminal at Dongying Port, a key coastal hub in eastern China.
The Treasury's Office of Foreign Assets Control also announced measures against six vessels identified as part of a "shadow fleet" allegedly used to evade sanctions and move Iranian oil covertly. Two ship captains were also named in the sanctions.
Under U.S. law, the sanctioned individuals and entities are now "blocked," which means that American companies and citizens are generally prohibited from conducting any business with them. Any assets under U.S. jurisdiction are frozen.
These actions are part of a strategy by the Trump administration to choke off revenue to Tehran, which Washington accuses of supporting terrorism and regional instability. Thursday's move follows similar sanctions announced in March targeting another Chinese refiner and related businesses.
The penalties come just two days before Bessent and other American officials meet Chinese counterparts in Switzerland to begin talks to ease tensions in the ongoing trade war between the two countries.
Trump has vowed to enforce a "maximum pressure" campaign to curtail Iran's oil exports — a major source of revenue for the regime. The first Trump administration withdrew from the 2015 nuclear deal in 2018.
Though China has remained one of Iran's top oil customers, U.S. officials have repeatedly warned that continued trade in sanctioned commodities will result in economic penalties. The latest action signals that Washington is willing to target not only Iranian entities but also foreign firms helping Iran bypass restrictions.
The Treasury Department said the sanctions are meant to serve as a deterrent and encourage companies to comply with U.S. laws, regardless of their home country.
Jim Thomas ✉
Jim Thomas is a writer based in Indiana. He holds a bachelor's degree in Political Science, a law degree from U.I.C. Law School, and has practiced law for more than 20 years.
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