US sanctions Chinese refinery over Iranian oil purchases

The Trump administration has imposed fresh sanctions on a Chinese refinery accused of buying large volumes of Iranian oil, as Washington and Tehran prepare for another round of talks.

The US Treasury said it targeted Hengli Petrochemical (Dalian), describing it as a major buyer of Iranian crude and petroleum products.

Officials also sanctioned around 40 shipping companies and vessels linked to what they described as Iran’s “shadow fleet”, used to move oil despite restrictions.

The move comes ahead of renewed negotiations, underscoring continued US pressure on Tehran’s energy exports.

China has previously criticised such measures, calling unilateral sanctions “illegal”.

Smaller independent refiners - known as “teapots” - play a significant role in China’s refining sector, accounting for roughly a quarter of capacity.

Previous US sanctions on similar firms have disrupted supply chains and forced refiners to rebrand products to continue operating.