The United States has imposed sanctions on Shandong Shengxing Chemical Co., Ltd, a China-based independent "teapot" refinery, for purchasing over $1 billion worth of Iranian crude oil. The move is part of the administration's efforts to pressure Iran into halting its illicit oil exports, including to China.
According to the Department of the Treasury, the sanctions target several companies and vessels involved in facilitating Iranian oil shipments to China as part of Iran's "shadow" fleet. This is the second action taken by the US against an independent China-based teapot refinery since President Trump issued National Security Presidential Memorandum 2 on February 4, 2025.
The sanctions are being enforced under Executive Order 13902, which targets Iran's petroleum and petrochemical sectors. The move marks the sixth round of sanctions targeting Iranian oil sales since the president issued the memorandum. The US is committed to driving Iran's illicit oil exports to zero as long as Tehran continues to use its oil revenues to fund destabilizing activities.
"This action holds both Iran and all its partners in sanctions evasion accountable," said Tammy Bruce, Department Spokesperson. "As long as Iran attempts to generate oil revenues to fund its destabilizing activities, the US will continue to take aggressive action."
The sanctions follow a pattern of US efforts to crack down on Iranian oil smuggling, with the aim of increasing pressure on Tehran to end its illicit oil exports. The move is seen as part of the US's ongoing "maximum pressure campaign" against Iran.
For more information on today's actions, please visit the Department of the Treasury's website.