US targets China refinery in sweeping Iran oil crackdown, sanctions ‘shadow fleet’ tankers

The U.S. Treasury's Office of Foreign Assets Control (OFAC) connected Friday sanctioned a large Chinese lipid refinery and dozens of ships tied to Iran's "shadow fleet," escalating efforts to choke disconnected Tehran's main root of revenue.

Officials said successful a property merchandise that the determination targets Hengli Petrochemical, 1 of Iran’s largest lipid buyers, on with a web of shipping companies and tankers liable for transporting billions of dollars’ worthy of petroleum products to overseas markets. The Treasury Department identified these "shadow fleet" vessels arsenic the fiscal lifeline for Iran's "unstable regime."

The crackdown is portion of "Economic Fury," a broader run to compression Iran’s system by limiting its quality to merchantability lipid abroad, gross the U.S. says funds the regime’s subject and destabilizing activities crossed the Middle East.

"Economic Fury is imposing a fiscal stranglehold connected the Iranian regime, hampering its aggression successful the Middle East, and helping to curtail its atomic ambitions," Treasury Secretary Scott Bessent said.

SECOND TANKER SEIZED NEAR VENEZUELA AS US ENFORCES OIL BLOCKADE

An lipid tanker is seen adjacent the terminal astatine Kharg Island, Iran, arsenic U.S. officials and analysts see whether seizing the land could importantly interaction Iran's lipid exports. (Ali Mohammadi/Bloomberg via Getty Images)

Hengli Petrochemical (Dalian) Refinery Co. is simply a China-based "teapot" refinery, a word utilized for autarkic facilities known for purchasing discounted crude, including from sanctioned countries.

The refinery, 1 of China’s largest autarkic facilities, has received Iranian lipid cargoes from sanctioned shadiness fleet vessels since astatine slightest 2023. Hengli has besides purchased lipid tied to Iran’s equipped forces, generating hundreds of millions of dollars for the Iranian military.

Hengli has besides received shipments tied to Sepehr Energy Jahan Nama Pars Company, a steadfast identified by U.S. officials arsenic a beforehand for Iran’s equipped forces that helps facilitate lipid income abroad. The institution operates connected behalf of Iran’s Armed Forces General Staff, utilizing a web of intermediaries and vessels to determination sanctioned crude, with proceeds helping money the country’s subject programs and determination proxy groups.

IRAN’S REMAINING WEAPONS: HOW TEHRAN CAN STILL DISRUPT THE STRAIT OF HORMUZ

The Iranian-flagged Touska cargo vessel pours fume retired aft U.S. forces launched missiles astatine it's power country pursuing its usurpation of the U.S. blockade successful the Strait of Hormuz. 4/20/26. U.S. Central Command (CENTCOM) (U.S. Central Command (CENTCOM))

The caller sanctions besides people the web that makes these lipid income possible, a "shadow fleet" of aging tankers and ammunition companies that determination petroleum crossed planetary markets portion evading sanctions and obscuring the root of shipments.

These ships debar detection by transferring cargo from 1 tanker to different successful the unfastened ocean. Treasury officials said 19 vessels were targeted successful the action.

A U.S. subject chopper hovers implicit the sanctioned stateless crude lipid tanker M/T Tifani during an interdiction connected April 21, 2026. (Department of War)

The determination is portion of the Trump administration’s renewed "maximum pressure" run against Iran, aimed astatine cutting disconnected the regime’s superior root of gross done lipid exports and sanctions enforcement.

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U.S. officials accidental lipid exports stay the backbone of Iran’s economy, and efforts to restrict those flows are designed to bounds the government’s quality to money its military, enactment proxy groups and beforehand its atomic program.

Treasury officials warned that further sanctions are apt arsenic the U.S. continues targeting the networks, intermediaries and buyers that alteration Iran to determination lipid connected the planetary market.