US Sanctions Chinese Refinery for Iranian Oil Purchases, Impacting Global Oil Trade
The United States has imposed sanctions on Hengli Petrochemical (Dalian) Refinery, China's second-largest independent refinery, for purchasing Iranian oil. The US Treasury Department announced that Hengli has been a significant customer for Tehran, generating substantial revenue for Iran's military through these transactions. In addition to targeting Hengli, the US has sanctioned approximately 40 shipping firms and vessels allegedly involved in Iran's oil trade. This move is part of a broader strategy to curb Iran's oil and gas export revenues, with the US Navy blockading Iranian ports since April 13. The Chinese embassy in Washington, DC, has criticized the sanctions, urging the US to cease politicizing trade and technology issues. China's 'teapot' refineries, like Hengli, play a crucial role in maintaining the country's oil supply by importing discounted Iranian and Russian oil.