US expands Iran sanctions, warns Chinese refineries of risks
Photo: Washington threatens Beijing with sanctions (Getty Images)
The US has imposed sanctions on 35 individuals and entities linked to Iran's shadow banking system. Separately, Washington has warned banks that do business with Chinese oil refineries paying Tehran for passage through the Strait of Hormuz, Reuters reports.
Blow to shadow finance
The Office of Foreign Assets Control (OFAC) of the US Department of the Treasury states that the sanctioned individuals and companies facilitated the movement of tens of billions of dollars through sanctions evasion and terrorist financing schemes.
Among the entities subject to restrictions are Farab Soroush Afagh Qeshm, which cooperates with Iran’s Shahr Bank to sell oil, as well as several so-called rahbar companies linked to Bank Sina and Bank Sepah. The latter financed Iran’s ballistic missile program.
Threat to Chinese oil refineries
OFAC separately warned banks: any payments to the Iranian government or the Islamic Revolutionary Guard Corps for passage through the Strait of Hormuz face severe sanctions.
Independent Chinese oil refineries, so-called teapots, primarily in Shandong Province, came under particular scrutiny. Washington noted that some of them conducted dollar transactions through the US financial system. China purchases over 80% of Iranian oil.
The Trump administration has already imposed sanctions on five Chinese refineries; on Friday, Hengli Petrochemical, one of the largest buyers of Iranian oil, was targeted.
Over 1,000 sanctions
Since February 2025, OFAC has imposed restrictions on approximately 1,000 Iranian individuals and entities, as well as ships and aircraft. Treasury Secretary Scott Bessent called Iran’s shadow banking system a critical financial artery for the country’s armed forces and warned of serious consequences for anyone who cooperates with these networks.
Earlier, the US imposed a naval blockade of the Strait of Hormuz after Iran blocked shipping in response to strikes by the US and Israel.
President Donald Trump warned that violators of the blockade could be destroyed and also cited the massive losses suffered by the Iranian navy. According to Axios, Tehran has deployed new sea mines, while the US is using underwater drones to neutralize them.
