The US has sanctioned a major China-based oil refinery and approximately 40 shipping companies and vessels that operate as part of Iran's shadow fleet. This move makes good on threats by the Trump administration to impose secondary sanctions on companies and countries that do business with Iran.
The Treasury Department specifically targeted the Hengli Petrochemical (Dalian) Refinery, describing it as a top independent Chinese refinery and one of Iran's largest customers of crude oil and petroleum products. The US Treasury stated that the refinery has generated hundreds of millions of dollars for Iran's military.
Washington is widening its crackdown on the secretive oil and chemical trade between Beijing and Tehran as the Trump administration ramps up economic pressure ahead of diplomatic talks and a Trump-Xi summit. Data from 2025 showed that China buys more than 80 per cent of Iran's shipped oil.