America has imposed sanctions on sugar refineries and more than 40 shipping companies.Image Credit source: Google Gemini
The Trump administration is imposing economic sanctions on a large oil refinery located in China and about 40 shipping companies and tankers involved in the transport of Iranian oil. This was announced on Friday and was first confirmed by the report of Associated Press. In fact, the American administration had already threatened that if anyone does business with Iran, action will be taken against him. It is also part of a larger campaign by the Republican administration that aims to completely shut down Iran’s main source of income – its oil exports. Along with this, this month America has also imposed a physical blockade on the Strait of Hormuz. This is a waterway of the Persian Gulf which is very important for the supply of energy around the world. These restrictions have been imposed just a few weeks before the meeting of President Donald Trump and China’s Xi Jinping in China.
Iranian oil consignment was being received from 2023
Hengli Petrochemical’s refinery located in Dalian port city is also included in the restrictions imposed on Friday. The refinery has the capacity to process approximately 400,000 barrels of crude oil per day, making it one of the largest independent refineries in China. The Treasury Department says that Hengli has been receiving shipments of Iranian crude oil since 2023, which has earned the Iranian military millions of dollars. An advocacy group called ‘United Against Nuclear Iran’ said in February 2025 that Hengli is one of dozens of Chinese buyers purchasing Iranian oil. Treasury Secretary Scott Besant said Friday that his department “will continue to crack down on the network of ships, middlemen and buyers that Iran relies on to get its oil to markets around the world.”
These countries were warned
Earlier this month, Besant’s department had sent a letter to financial institutions in China, Hong Kong, UAE and Oman. In this letter, a threat was made to impose secondary sanctions on doing business with Iran and these countries were accused of allowing Iran’s illegal activities to continue through their financial institutions. During a press briefing at the White House on April 15, Besant said that the administration has clearly told these countries that if you are buying Iranian oil, or if Iranian money is deposited in your banks, then we are now ready to impose secondary sanctions on you. This is a very strict step.
Russian oil has got exemption
These restrictions have been imposed at a time when energy trade around the world is going through a period of turmoil. Due to the ongoing war around the Persian Gulf, the supply of oil and natural gas is being disrupted, due to which their prices are skyrocketing. The Treasury Department has tried to reduce the impact of rising oil prices. For this, it has temporarily relaxed the sanctions on Russian oil, and has also given a one-time relaxation on Iranian oil, which is already in the sea. Earlier this month, the US imposed sanctions on a Chinese refinery that was accused of buying Iranian oil. Subsequently, Liu Pengyu, a spokesman for China’s embassy in Washington, said that the use of sanctions “undermines the international trade system and rules, hinders normal economic and trade transactions, and violates the legitimate rights and interests of Chinese companies and individuals.”
