The Trump administration has announced economic sanctions targeting a significant China-based oil refinery and approximately 40 shipping companies and tankers involved in the transportation of Iranian oil. This action was revealed on Friday and first reported by The Associated Press. It fulfills the administration’s commitment to impose secondary sanctions on entities that engage in business with Iran, forming part of a broader strategy to disrupt Iran’s primary revenue source—its oil exports.
In conjunction with these sanctions, the U.S. has enforced a physical blockade on the Strait of Hormuz, a critical waterway for global energy supplies. The sanctions were timed just weeks before a scheduled meeting between President Donald Trump and Chinese President Xi Jinping.
Among the entities affected by Friday’s sanctions is Hengli Petrochemical, located in the port city of Dalian. With a processing capacity of approximately 400,000 barrels of crude oil per day, it is one of the largest independent refineries in China. The U.S. Treasury Department stated that Hengli has received shipments of Iranian crude oil since 2023, resulting in substantial revenue for the Iranian military.
As of February 2025, advocacy group United Against Nuclear Iran highlighted Hengli as one of numerous Chinese buyers of Iranian oil. Treasury Secretary Scott Bessent asserted on Friday that his agency will persist in constraining the network of vessels, intermediaries, and buyers crucial for Iran to transport its oil to international markets.
Earlier this month, Bessent’s department communicated with financial institutions across China, Hong Kong, the UAE, and Oman, warning of potential secondary sanctions for doing business with Iran. He accused these countries of facilitating Iranian illicit activities through their financial systems.
During a White House press briefing on April 15, Bessent indicated that nations purchasing Iranian oil or holding Iranian funds in their banks would now face the possibility of secondary sanctions, which he described as a significant measure. These sanctions arrive amidst turbulence in the global energy trade, exacerbated by conflicts in the Persian Gulf that are disrupting oil and natural gas shipments and driving up prices.
To mitigate the impact on rising oil prices, the Treasury has issued temporary sanctions waivers on Russian oil and a one-time waiver for Iranian oil that is already en route.
Published on April 25, 2026.
