US Sanctions Chinese Refinery Over Iran Oil

The United States, under the Trump administration, has imposed sanctions on Hengli Petrochemical (Dalian) Refinery, a major Chinese 'teapot' refinery, for purchasing billions of dollars worth of Iranian oil. This action is part of a broader campaign to cut off Iran's key source of revenue and also includes sanctions on approximately 40 shipping companies and vessels forming Iran's shadow fleet. The United States — United States Department of the Treasury, led by Secretary Scott Bessent, has also sent letters to financial institutions in China, China — Hong Kong, the United Arab Emirates, and Oman, threatening secondary sanctions if they facilitate Iranian illicit activities. Concurrently, the United States has imposed a physical blockade on the Strait of Hormuz, a critical waterway for global energy supplies. China has expressed strong opposition to these 'illegal' unilateral sanctions, arguing they undermine international trade and infringe upon the legitimate rights of Chinese companies. This event occurs just weeks before a scheduled meeting between Donald Trump and Xi Jinping, further complicating U.S.-China relations.