US imposes sanctions on a China-based oil refinery and 40 shippers over Iranian oil

Treasury Secretary Scott Bessent testifies on his agency's proposed budget estimates for fiscal year 2027 at a Senate Appropriation subcommittee, at the Capitol in Washington, Wednesday, April 22, 2026. (AP Photo/J. Scott Applewhite) 2026-04-24T18:12:53Z WASHINGTON (AP) — The Trump administration is placing economic sanctions on a major China-based oil refinery and roughly 40 shipping companies and tankers involved in transporting Iranian oil. The move, announced Friday and first reported by The Associated Press, makes good on the Trump administration’s threat to impose secondary sanctions on companies and countries that do business with Iran. It’s also part of the Republican administration’s overall ramped-up campaign to cut off Iran’s key source of revenue — its oil exports. Concurrently, the U.S. this month imposed a physical blockade on the Strait of Hormuz , the Persian Gulf waterway that is crucial to global energy supplies. These sanctions come just a few weeks before President Donald Trump and China’s Xi Jinping are due to meet in China . Included in Friday’s sanctions is Hengli Petrochemical’s facility in the port city of Dalian, which has a processing capacity of roughly 400,000 barrels of crude oil per day, making it one of the biggest independent refineries in China. freestar.queue.push(function () { window.fsAdCount = window.fsAdCount + 1 || 0; let customChannel = '/dynamic_' + fsAdCount; let adList = document.querySelectorAll(".fs-feed-ad") let thisAd = adList[fsAdCount]; let randId = Math.random().toString(36).slice(2); thisAd.id = randId; let thisPlacement = fsAdCount == 0 ? "apnews_story_feed" : "apnews_story_feed_dynamic"; freestar.newAdSlots({ placementName: thisPlacement, slotId: randId }, customChannel); }); The Treasury Department says Hengli has received Iranian crude oil shipments since 2023 and has generated hundreds of millions of dollars in revenue for the Iranian military. The advocacy group Iran" class="entity-link entity-organization" data-entity-id="13774" data-entity-type="organization">United Against Nuclear Iran said in February 2025 that Hengli is one of dozens of Chinese purchasers of Iranian oil. Treasury Secretary Scott Bessent said Friday that his agency “will continue to constrict the network of vessels, intermediaries and buyers Iran relies on to move its oil to global markets.” /* Desktop-first: fully collapse by default */ #ap-readmore-embed { display: none; margin: 0; padding: 0; height: 0; min-height: 0; overflow: hidden; text-align: center; position: relative; z-index: 2; } /* Only show on mobile */ @media (max-width: 767px) { #ap-readmore-embed { display: block; margin: 28px 0; height: auto; overflow: visible; } } #ap-readmore-embed .ap-readmore-btn { appearance: none; -webkit-appearance: none; border: 0; background: #000; color: #fff; cursor: pointer; display: inline-flex; align-items: center; justify-content: center; gap: 10px; padding: 14px 22px; border-radius: 999px; font-family: inherit, "AP Sans", -apple-system, BlinkMacSystemFont, "Helvetica Neue", Arial, sans-serif; font-weight: 700; font-size: 16px; letter-spacing: 0.2px; line-height: 1; box-shadow: 0 10px 18px rgba(0,0,0,0.12); 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var root = rootCandidates.find(function (c) { return c.contains(stopEl); }) || document.body; var all = root.getElementsByTagName("*"); var hidden = []; for (var i = 0; i Earlier this month, Bessent’s department sent a letter to financial institutions in China, Hong Kong, the UAE and Oman threatening to levy secondary sanctions for doing business with Iran and accusing those countries of allowing Iranian illicit activities to flow through their financial institutions. Bessent said during a White House press briefing on April 15 that the administration has told countries “that if you are buying Iranian oil, that if Iranian money is sitting in your banks, we are now willing to apply secondary sanctions, which is a very stern measure.” freestar.queue.push(function () { window.fsAdCount = window.fsAdCount + 1 || 0; let customChannel = '/dynamic_' + fsAdCount; let adList = document.querySelectorAll(".fs-feed-ad") let thisAd = adList[fsAdCount]; let randId = Math.random().toString(36).slice(2); thisAd.id = randId; let thisPlacement = fsAdCount == 0 ? "apnews_story_feed" : "apnews_story_feed_dynamic"; freestar.newAdSlots({ placementName: thisPlacement, slotId: randId }, customChannel); }); The sanctions come as the global energy trade is in turmoil as war around the Persian Gulf chokes off oil and natural gas shipments, causing prices to soar. Treasury has tried to quell the impact of rising oil prices issuing temporary sanctions waivers on Russia oil and a one-time waiver on Iranian oil already at sea. The AP was making efforts to contact Chinese officials for comment on the sanctions. After the U.S. earlier this month sanctioned a Chinese refinery accused of buying Iranian oil, Liu Pengyu, a spokesperson for China’s embassy in Washington, said the use of the sanctions “undermines international trade order and rules, disrupts normal economic and trade exchanges, and infringes upon the legitimate rights and interests of Chinese companies and individuals.” FATIMA HUSSEIN Hussein reports on the U.S. Treasury Department for The Associated Press. She covers tax policy, sanctions and any issue that relates to money. twitter mailto