US Targets China Refinery, Iran Shadow Fleet
US China oil tensions
The ongoing Iran conflict, the United States has taken decisive action & imposed sanctions on a major Chinese oil refinery for purchasing Iranian oil worth billions of dollars. This move aims to weaken Iran’s primary revenue source,oil exports strengthen Washington’s economic pressure strategy.
Firstly, the U.S. Treasury Department directly targeted the Hengli Petrochemical refinery in Dalian. The refinery stands among the largest buyers of Iranian crude oil .Petroleum products & processes nearly 400,000 barrels per day. Notably, Hengli has been importing Iranian oil since 2023.
Furthermore, U.S. authorities sanctioned around 40shipping companies, vessels linked to Iran’s “shadow fleet.” These ships operate without proper identification & deliberately bypass international sanctions to transport Iranian oil across global markets.
Meanwhile, this strong steps comes just before a planned meeting between U.S. President Donald Trump and Chinese President Xi Jinping in Beijing.
In addition, the United States has intensified its crackdown by targeting transporters, intermediaries, & buyers involved in Iran’s oil trade network. Treasury Secretary Scott Bessent confirmed that the administration will continue tightening restrictions on such global networks.
Earlier this month, Bessent warned financial institutions in China, Hong Kong, the UAE, and Oman about possible secondary sanctions. He clearly stated that any country purchasing Iranian oil or holding Iranian funds must prepare for strict economic consequences.
Moreover, data shows that China continues to dominate as Iran’s largest oil buyer. According to Kpler, China purchased over 80% of Iran’s oil exports in 2025.
However, experts point out that independent Chinese refineries remain partly shielded from U.S. sanctions due to their limited exposure to the American financial system.
Nevertheless, targeting Chinese banks that facilitate these transactions could significantly disrupt Iran’s oil trade.
Overall, the United States has escalated its economic offensive with a clear objective: to cut Iran’s oil revenue and tighten global compliance with sanctions.
US China oil tensions
