US sanctions Chinese refinery for buying Iranian crude

The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) has sanctioned China-based independent teapot refinery Hengli Petrochemical (Dalian) Refinery for purchasing Iranian crude oil.

IMAGE: Crude oil pipelines connected to an oil refinery. Getty Images

OFAC described the refinery as “one of Iran’s largest customers for crude oil and other petroleum products, having purchased billions of dollars’ worth of Iranian petroleum.”

The move also targets around 40 shipping firms and vessels allegedly linked to Iran’s shadow fleet, OFAC said. The sanctions are aimed at limiting Iran’s revenue through oil exports and curbing its ability to sustain the conflict with the US.

Separately, the US has vowed to continue blockading ships doing business with Iran as they pass through the Strait of Hormuz.

“That blockade is ongoing and continues to become more effective and stronger,” US secretary of war Pete Hegseth said during a press briefing on Friday.

Brent’s price has risen above $107/bbl amid concerns that the Middle East crisis remains far from de-escalation.

By Shilpa Sharma

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