The US imposed sanctions on Wednesday on Shandong Shengxing Chemical Co. Ltd, a Chinese refinery, for buying Iranian crude oil worth over USD 1 billion as President Donald Trump’s administration seeks to ramp up pressure on Tehran.
The U.S. Treasury Department said in a statement the action would increase pressure on Chinese importers of Iranian oil as Trump seeks to restore his “maximum pressure” campaign on Iran, which includes efforts to drive its oil exports down to zero.
The action comes as the Trump administration has relaunched negotiations with Iran over its nuclear programme this month, with talks in Oman last weekend and a second round expected in Rome this weekend.
A statement from the US State Department said, “The United States is today sanctioning Shandong Shengxing Chemical Co, Ltd, a China-based independent ‘teapot’ refinery, for purchasing more than a billion dollars’ worth of Iranian crude oil.”
Also Read | Amid ongoing tariff war, China accuses US of cyberattacks, issues arrest warrants for 3 NSA ‘agents’
“The President is committed to driving Iran’s illicit oil exports, including to China, to zero. The United States is also imposing sanctions on several companies and vessels involved in facilitating Iranian oil shipments to China as part of Iran’s ‘shadow’ fleet,” it added.
China does not recognise U.S. sanctions and is the largest importer of Iranian oil. China and Iran have built a trading system that uses mostly Chinese yuan and a network of middlemen, avoiding the dollar and exposure to U.S. regulators.
“Any refinery, company, or broker that chooses to purchase Iranian oil or facilitate Iran’s oil trade places itself at serious risk,” Treasury Secretary Scott Bessent said in the statement.
Also read | ‘Stop threatening’: China warns after US slaps Beijing with whopping 245% tariffs
“The United States is committed to disrupting all actors providing support to Iran’s oil supply chain, which the regime uses to support its terrorist proxies and partners.”
In his first term, Trump withdrew the U.S. from a 2015 deal between Iran and world powers that placed strict limits on Tehran’s uranium enrichment activities in exchange for sanctions relief. Trump also reimposed sweeping U.S. sanctions.
Since then, Iran has far surpassed that deal’s limits on uranium enrichment.
Also read: ‘Harvard is a JOKE’: Trump slams Ivy League for hiring ‘birdbrains’ and ‘Leftist dopes’, warns to cut federal funds
Western powers accuse Iran of having a clandestine agenda to develop nuclear weapons capability by enriching uranium to a high level of fissile purity, above what they say is justifiable for a civilian atomic energy programme. Tehran says its nuclear programme is wholly for civilian power purposes.