U.S. Sanctions Second Chinese “Teapot” Refinery Over Iranian Oil Purchases

U.S. Targets Second Chinese Teapot Refinery Over Iran Oil Deals

By DTD- On Apr 17, 2025

Washington: The United States on Wednesday imposed fresh sanctions on a second China-based “teapot” refinery, Shandong Shengxing Chemical Co., Ltd, for purchasing more than $1 billion worth of Iranian crude oil. The move is the latest step in former President Donald Trump’s revived “maximum pressure” campaign aimed at curbing Iran’s oil exports.

The U.S. State Department stated the sanctions are part of a broader effort to eliminate Iran’s “illicit oil exports,” which it claims fund destabilizing activities in the region. Alongside Shengxing Chemical, the U.S. also sanctioned multiple companies and vessels accused of helping facilitate Iranian oil shipments to China through Iran’s so-called “shadow fleet.”

“While Iran continues to generate oil revenues for malign purposes, the United States will hold both Iran and its sanctions-evading partners accountable,” said State Department spokesperson Tammy Bruce.

This marks the second such action in recent months targeting China’s independent refineries—commonly known as “teapots”—which are typically smaller, privately owned operations that operate outside the scope of larger, state-controlled enterprises. Just last month, the U.S. sanctioned another Shandong-based refinery for buying $500 million worth of Iranian oil via ships allegedly tied to Yemen’s Huthi rebels.

Beijing has condemned the sanctions, accusing the Trump administration of undermining normal economic and trade cooperation between China and Iran.

The renewed sanctions come amid heightened concerns over Iran’s nuclear program. On the same day, International Atomic Energy Agency (IAEA) chief Rafael Grossi warned that Iran is “not far” from acquiring a nuclear weapon, ahead of his visit to Tehran for talks on nuclear compliance.

The 2015 Iran nuclear deal, which the IAEA was tasked with monitoring, collapsed after the United States unilaterally withdrew from the agreement during Trump’s first term in office.