U.S. Sanctions Chinese Refinery And 19 Tankers In Iran Oil Crackdown

The U.S. Treasury in Washington on Thursday announced sanctions on Chinese refinery Hengli Petrochemical and 19 crude tankers tied to Iranian oil shipments, aiming to cut Tehran's revenue that funds its military operations.

The package also blacklisted dozens of shipping companies and cryptocurrency wallets linked to the so-called shadow fleet that masks Iranian oil movements. U.S. officials said the measures aim to degrade networks that evade previous sanctions and raise the cost of buying Iranian crude.

The episode traces back to years of rising regional tensions and a 2026 escalation that included U.S. and Israeli strikes and Iran's closure of the Strait of Hormuz. Washington launched an "Economic Fury" campaign in April 2026 to choke off oil revenues that could finance Iran's military response. China has been the main buyer of Iranian crude, taking over 80 percent of shipped volumes in 2025, and Iran's exports remained elevated last year, averaging 1.5 million barrels per day in July 2025 and yielding roughly $43 billion in oil revenues in 2024.

Initial briefings highlighted 19 tankers, but open-source trackers and social reporting show sanctions touching nearly 40 shipping firms and linked crypto wallets, expanding the scope of the crackdown. Observers noted one sanctioned tanker, LPG SEVAN, departed the Gulf of Oman hours before the action was announced.

The sanctions risk raising tensions with China and could disrupt routes that have kept Iranian crude flowing despite previous penalties. U.S. officials say the move is meant to further squeeze Tehran's finances while pressuring intermediaries that enable the shadow fleet.