The United States has imposed fresh sanctions on a third Chinese independent oil refinery and several port terminal operators for importing Iranian oil, escalating its renewed “maximum pressure” campaign on Tehran.
On Thursday, May 8, 2025, the U.S. Treasury Department announced sanctions against Hebei Xinhai Chemical Group, a private Chinese refinery, and three companies linked to the Dongying Port in Shandong Province.
The action blocks their U.S. assets and prohibits American entities from engaging in business with them.
Washington targets Iran’s oil revenue
According to a Treasury statement, the companies helped move hundreds of millions of dollars’ worth of Iranian oil.
The Biden administration had previously relaxed enforcement, but President Donald Trump has revived the hardline strategy to cut Iran’s export earnings.
The move marks the third time under Trump’s second term that Washington has penalized Chinese “teapot” refiners — smaller, independent firms that play a major role in China’s oil market.
“So long as Iran tries to fund destabilizing activities with oil revenues, we will hold both Iran and its partners accountable,” the Treasury warned.
Ports facilitating sanctioned shipments
The three designated port operators — Baogang (Dongying Donggang) Logistics and Warehousing Co., Ltd, Shandong Jingang Port Co., Ltd, and Shandong Baogang International Port Co., Ltd — run terminals that have received more than one million barrels of Iranian oil, reportedly from shadow fleet tankers.
These tankers often turn off their location transponders and operate under false identities to avoid detection.
U.S sanctions impacting China’s oil trade
Sources familiar with the market told Reuters that earlier sanctions on other Chinese refiners caused disruptions in crude supply.
Some buyers reportedly stopped importing Iranian oil or masked product origins.
The pressure is also deterring larger refiners from future transactions with Iran.
The Chinese Embassy in Washington and Iran’s UN mission in New York did not immediately respond to requests for comment.
U.S renewed pressure on Iran
The Trump administration reinstated its “maximum pressure” campaign after accusing Tehran of advancing its nuclear program and supporting militant groups in the Middle East.
This policy aims to economically isolate Iran by choking off its oil revenue.
Despite China being Iran’s biggest oil customer, the U.S. has increasingly targeted Chinese firms as part of broader efforts to enforce sanctions.
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