US issues new sanctions targeting Chinese importers of Iranian oil

The United States issued new sanctions targeting Iran's oil exports, including against a China-based "teapot refinery", as President Donald Trump's administration seeks to ramp up pressure on Tehran
Reuters Wednesday, 16 April 2025

The United States issued new sanctions targeting Iran's oil exports, including against a China-based "teapot refinery", as President Donald Trump's administration seeks to ramp up pressure on Tehran.

The U.S. Treasury Department said in a statement the action would increase pressure on Chinese importers of Iranian oil as Trump seeks to restore his "maximum pressure" campaign on Iran, which includes efforts to drive its oil exports down to zero.

The action comes as the Trump administration has relaunched negotiations with Iran over its nuclear programme this month, with talks in Oman last weekend and a second round expected in Rome this weekend.

The Treasury said it imposed sanctions on a China-based independent "teapot" refinery it accused of playing a role in purchasing more than $1 billion worth of Iranian crude oil.

Washington also issued additional sanctions on several companies and vessels it said were responsible for facilitating Iranian oil shipments to China as part of Iran's "shadow fleet".

Iran's mission to the United Nations in New York and China's embassy in Washington did not immediately respond to requests for comment.

China does not recognize U.S. sanctions and is the largest importer of Iranian oil. China and Iran have built a trading system that uses mostly Chinese yuan and a network of middlemen, avoiding the dollar and exposure to U.S. regulators.

"Any refinery, company, or broker that chooses to purchase Iranian oil or facilitate Iran’s oil trade places itself at serious risk," Treasury Secretary Scott Bessent said in the statement.