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

close Video Trump intensifies economic pressure on Iran as US forces board oil tanker President Donald Trump increased economic pressure on Iran, with U.S. forces boarding a third oil tanker in the Indian Ocean. Treasury Secretary Scott Bessent highlights how Kharg Island oil storage is full, forcing a shutdown of Iranian oil wells. NEWYou can now listen to Fox News articles! Hören Sie sich diesen Artikel an 3 Min The U.S. Treasury's Office of Foreign Assets Control (OFAC) on Friday sanctioned a major Chinese oil refinery and dozens of ships tied to Iran's "shadow fleet," escalating efforts to choke off Tehran's main source of revenue. Officials said in a press release the move targets Hengli Petrochemical, one of Iran’s largest oil buyers, along with a network of shipping companies and tankers responsible for transporting billions of dollars worth of petroleum products to foreign markets. The Treasury Department identified these "shadow fleet" vessels as the financial lifeline for Iran's "unstable regime." SECOND TANKER SEIZED NEAR VENEZUELA AS US ENFORCES OIL BLOCKADE The crackdown is part of Economic Fury, a broader campaign to squeeze Iran’s economy by limiting its ability to sell oil abroad, revenue the U.S. says funds the regime’s military and destabilizing activities across the Middle East. "Economic Fury is imposing a financial stranglehold on the Iranian regime, hampering its aggression in the Middle East and helping to curtail its nuclear ambitions," Treasury Secretary Scott Bessent said. An oil tanker near the terminal at Kharg Island, Iran, as U.S. officials and analysts consider whether seizing the island could significantly impact Iran's oil exports. (Ali Mohammadi/Bloomberg via Getty Images) Hengli Petrochemical (Dalian) Refinery Co. is a China-based "teapot" refinery, a term used for independent facilities known for purchasing discounted crude, including from sanctioned countries. The refinery, one of China’s largest independent facilities, has received Iranian oil cargoes from sanctioned shadow fleet vessels since at least 2023. Hengli has also purchased oil tied to Iran’s armed forces, generating hundreds of millions of dollars for the Iranian military. Hengli has also received shipments tied to Sepehr Energy Jahan Nama Pars Company, a firm identified by U.S. officials as a front for Iran’s armed forces that helps facilitate oil sales abroad. The company operates on behalf of Iran’s Armed Forces General Staff, using a network of intermediaries and vessels to move sanctioned crude, with proceeds helping fund the country’s military programs and regional proxy groups. Iran’S REMAINING WEAPONS: HOW TEHRAN CAN STILL DISRUPT THE STRAIT OF HORMUZ The Iranian-flagged Touska cargo ship after U.S. forces launched missiles at its control room after its violation of the U.S. blockade in the Strait of Hormuz April 20, 2026. (U.S. Central Command ) The new sanctions also target the network that makes these oil sales possible, a "shadow fleet" of aging tankers and shell companies that move petroleum across global markets while evading sanctions and obscuring the origin of shipments. These ships avoid detection by transferring cargo from one tanker to another in the open ocean. Treasury officials said 19 vessels were targeted in the action. A U.S. military helicopter hovers over the sanctioned stateless crude oil tanker M/T Tifani during an interdiction April 21, 2026. (Department of War) The move is part of the Trump administration’s renewed "maximum pressure" campaign against Iran, aimed at cutting off the regime’s primary source of revenue through oil exports and sanctions enforcement. U.S. officials say oil exports remain the backbone of Iran’s economy, and efforts to restrict those flows are designed to limit the government’s ability to fund its military, support proxy groups and advance its nuclear program. Treasury officials warned that additional sanctions are likely as the U.S. continues targeting the networks, intermediaries and buyers that enable Iran to move oil on the global market. Brittany Miller is a Breaking News Writer for Fox News Digital. Tips can be sent to brittany.miller@fox.com and @BrittMillerFox on X. Fox News' Antisemitism Exposed" newsletter brings you stories on the rising anti-Jewish prejudice across the U.S. and the world." By entering your email and clicking the Subscribe button, you agree to the Fox News and Terms of Use, and agree to receive content and promotional communications from Fox News. You understand that you can opt-out at any time. You've successfully subscribed to this newsletter!