US imposes sanctions on China for Iranian oil for first time

The sanctions were imposed on the Chinese Shandong Shouguang Luqing Petrochemical oil refinery, which purchased Iranian oil in violation of international restrictions.

Notably, this is the first time the US has "punished" China for cooperating with Tehran in the energy sector.

The US Department of the Treasury states that the Chinese company bought millions of barrels of oil worth around $500 million. The shipments were carried out by vessels from the shadow fleet, some of which are already under sanctions for links to the Houthis.

The oil in question is linked to Iranian military structures, including the Islamic Revolutionary Guard Corps. The company's CEO was also sanctioned.

Interestingly, the new restrictions could affect not only Iranian oil shipments but also Russian oil. Shandong province, where Shandong Shouguang Luqing Petrochemical is located, is a refining hub for private Chinese companies that have previously imported Russian oil.

It remains unclear whether the Chinese company has purchased Russian oil recently.

Additionally, the new US sanctions target eight shadow fleet vessels and four ship-owning companies registered in Hong Kong, Liberia, and China. The vessels operated under the flags of Panama, San Marino, Barbados, and the Comoros.

Washington continues to pressure Iran in an effort to curb its oil revenues and force it to abandon its nuclear program.

Sanctions against Iran

In early February, US President Donald Trump signed a memorandum on "maximum pressure" on Iran. Interestingly, even before his inauguration, President Trump had stated his intention to tighten sanctions against Iran.

Additionally, the US Department of the Treasury imposed sanctions on an international network linked to the Islamic Revolutionary Guard Corps (IRGC) for smuggling Iranian oil to China. This includes companies based in China, India, and the UAE.