US targets Chinese refinery in sweeping Iran oil crackdown, sanctions ‘shadow fleet’ tankers

The U.S. Treasury’s Office of Foreign Assets Control (OFAC) on Friday sanctioned a major Chinese oil refinery and dozens of ships tied to Iran’s “shadow fleet,” escalating efforts to choke off Tehran’s main source of revenue.Officials said in a press release the move targets Hengli Petrochemical, one of Iran’s largest oil buyers, along with a network of shipping companies and tankers responsible for transporting billions of dollars worth of petroleum products to foreign markets. The Treasury Department identified these “shadow fleet” vessels as the financial lifeline for Iran’s “unstable regime.”SECOND TANKER SEIZED NEAR VENEZUELA AS US ENFORCES OIL BLOCKADEThe crackdown is part of Economic Fury, a broader campaign to squeeze Iran’s economy by limiting its ability to sell oil abroad, revenue the U.S. says funds the regime’s military and destabilizing activities across the Middle East.”Economic Fury is imposing a financial stranglehold on the Iranian regime, hampering its aggression in the Middle East and helping to curtail its nuclear ambitions,” Treasury Secretary Scott Bessent said.Hengli Petrochemical (Dalian) Refinery Co. is a China-based “teapot” refinery, a term used for independent facilities known for purchasing discounted crude, including from sanctioned countries.The refinery, one of China’s largest independent facilities, has received Iranian oil cargoes from sanctioned shadow fleet vessels since at least 2023. Hengli has also purchased oil tied to Iran’s armed forces, generating hundreds of millions of dollars for the Iranian military.Hengli has also received shipments tied to Sepehr Energy Jahan Nama Pars Company, a firm identified by U.S. officials as a front for…

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