US Imposes Sanctions on Major Chinese Oil Refinery Over Iranian Imports

The U.S. Treasury Department announced the move on Friday, April 24, 2026. Located near the city of Dalian in northeastern China, the refinery has the capacity to process approximately 400,000 barrels of oil per day. The Trump administration claims that Hengli Petrochemical is a major customer of Iranian oil and has helped generate billions of dollars in revenue for the Iranian military since 2023.

The new sanctions list extends beyond the Chinese refinery to include a vast network involved in the transportation of Iranian oil. The U.S. Treasury’s Office of Foreign Assets Control (OFAC) stated that it has sanctioned approximately 40 shipping companies and vessels operated as part of Iran’s "shadow fleet." Through this action, Washington aims to further narrow the pathway for Iranian oil to enter the global market. U.S. Treasury Secretary Scott Bessent described the decision as part of a broader effort to tighten the "financial blockade" on Iran.

China has strongly condemned and protested the sanctions. In a statement, the Chinese Embassy in Washington accused the United States of "abusing" sanctions to target Chinese companies, calling the move a violation of international trade principles. Beijing maintains that its energy trade with Iran is entirely legitimate and normal. Notably, the Trump administration imposed similar sanctions last year on several other Chinese firms, including Hebei Xinhai and Shandong Shengxing Chemical. This latest move complicates diplomatic relations even further, occurring just as efforts were being made to create a climate for dialogue between the U.S. and Iran.