US targets China refinery in sweeping Iran oil crackdown, sanctions ‘shadow fleet’ tankers

The U.S. Treasury's Office of Foreign Assets Control (OFAC) connected Friday sanctioned a awesome Chinese lipid refinery and dozens of ships tied to Iran's "shadow fleet," escalating efforts to choke disconnected Tehran's main root of revenue.

Officials said successful a property merchandise that nan move targets Hengli Petrochemical, 1 of Iran’s largest lipid buyers, on pinch a web of shipping companies and tankers responsible for transporting billions of dollars’ worthy of petroleum products to overseas markets. The Treasury Department identified these "shadow fleet" vessels arsenic nan financial lifeline for Iran's "unstable regime."

The crackdown is portion of "Economic Fury," a broader run to compression Iran’s system by limiting its expertise to waste lipid abroad, gross nan U.S. says costs nan regime’s military and destabilizing activities crossed nan Middle East.

"Economic Fury is imposing a financial stranglehold connected nan Iranian regime, hampering its aggression successful nan Middle East, and helping to curtail its atomic ambitions," Treasury Secretary Scott Bessent said.

SECOND TANKER SEIZED NEAR VENEZUELA AS US ENFORCES OIL BLOCKADE

An lipid tanker is seen adjacent nan terminal astatine Kharg Island, Iran, arsenic U.S. officials and analysts see whether seizing nan land could importantly effect Iran's lipid exports. (Ali Mohammadi/Bloomberg via Getty Images)

Hengli Petrochemical (Dalian) Refinery Co. is simply a China-based "teapot" refinery, a word utilized for independent accommodation known for purchasing discounted crude, including from sanctioned countries.

The refinery, 1 of China’s largest independent facilities, has received Iranian lipid cargoes from sanctioned protector fleet vessels since astatine slightest 2023. Hengli has besides purchased lipid tied to Iran’s equipped forces, generating hundreds of millions of dollars for nan Iranian military.

Hengli has besides received shipments tied to Sepehr Energy Jahan Nama Pars Company, a patient identified by U.S. officials arsenic a beforehand for Iran’s equipped forces that helps facilitate lipid income abroad. The institution operates connected behalf of Iran’s Armed Forces General Staff, utilizing a web of intermediaries and vessels to move sanctioned crude, pinch proceeds helping money nan country’s subject programs and location proxy groups.

IRAN’S REMAINING WEAPONS: HOW TEHRAN CAN STILL DISRUPT THE STRAIT OF HORMUZ

The Iranian-flagged Touska cargo vessel pours fume retired aft U.S. forces launched missiles astatine it's power room pursuing its usurpation of nan U.S. blockade successful nan Strait of Hormuz. 4/20/26. U.S. Central Command (CENTCOM) (U.S. Central Command (CENTCOM))

The caller sanctions besides target nan web that makes these lipid income possible, a "shadow fleet" of aging tankers and ammunition companies that move petroleum crossed world markets while evading sanctions and obscuring nan root of shipments.

These ships debar discovery by transferring cargo from 1 tanker to different successful nan unfastened ocean. Treasury officials said 19 vessels were targeted successful nan action.

A U.S. subject chopper hovers complete nan sanctioned stateless crude lipid tanker M/T Tifani during an interdiction connected April 21, 2026. (Department of War)

The move is portion of nan Trump administration’s renewed "maximum pressure" run against Iran, aimed astatine cutting disconnected nan regime’s superior root of gross done oil exports and sanctions enforcement.

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U.S. officials opportunity lipid exports stay nan backbone of Iran’s economy, and efforts to restrict those flows are designed to limit nan government’s expertise to money its military, support proxy groups and beforehand its atomic program.

Treasury officials warned that further sanctions are apt arsenic nan U.S. continues targeting nan networks, intermediaries and buyers that alteration Iran to move lipid connected nan world market.