The U.S. Department of State has sanctioned Huaying Huizhou Daya Bay Petrochemical Terminal Storage in China for purchasing and storing Iranian crude oil from a sanctioned vessel. The move is part of the Trump Administration's maximum pressure campaign to drive Iran's oil exports, including to China, to zero.
According to officials, this action marks the fourth round of sanctions targeting Iranian oil sales since February 4, 2025, when President Trump issued National Security Presidential Memorandum 2. The sanctions are being imposed pursuant to Executive Order (E.O.) 13846 and Executive Order (E.O.) 13902, which authorize and reimpose certain sanctions with respect to Iran.
The Huaying Huizhou Daya Bay Petrochemical Terminal Storage is an oil terminal in China that has been identified as a major purchaser of Iranian crude oil. The Department of the Treasury has also sanctioned China-based Shandong Shouguang Luqing Petrochemical Co., Ltd., a "teapot" oil refinery, for purchasing and refining hundreds of millions of dollars' worth of Iranian crude oil.
The sanctions include restrictions on vessels linked to Ansarallah (Houthis), a Foreign Terrorist Organization, and the U.S.-designated Iranian Ministry of Defense of Armed Forces Logistics (MODAFL). The "teapot" refineries are private Chinese refineries that are the primary purchasers of Iranian oil. This is the United States' first designation of a teapot refinery.
In addition to these sanctions, the Department of the Treasury has identified 12 entities and one individual as blocked property for being responsible for shipping millions of barrels of Iranian oil to China. Eight vessels have also been designated as blocked property for their involvement in supplying teapot refineries with Iranian crude oil.
The Iranian regime uses the revenue it generates from these sales to finance attacks on U.S. allies, support terrorism around the world, and pursue other destabilizing actions. The United States will continue to hold Iran and all its sanctions-evading partners accountable as long as it attempts to generate oil revenues to fund its destabilizing activities.
The sanctions are designed to further restrict Iran's ability to access international markets for its oil exports and to limit its revenue streams. By targeting the country's energy sector, the U.S. aims to reduce its capacity to finance its destabilizing activities and undermine its regional influence.