US imposes sanctions on China refinery, others for Iran oil purchases

The Treasury Department sanctioned the Shandong Jincheng Petrochemical Group, which it said is an independent teapot refinery in Shandong Province that has purchased millions of barrels of Iranian oil since 2023.

It also sanctioned China-based Rizhao Shihua Crude Oil Terminal, which operates a terminal at Lanshan Port. Treasury said it has accepted more than a dozen of Iran's so-called shadow fleet vessels that evade the sanctions.

The tankers included Kongm, Big Mag, and Voy, which Treasury said transported several million barrels of Iranian oil to Rizhao.

The U.S. believes Iran's oil networks help Tehran fund its nuclear and missile programs and support militant proxies throughout the Middle East. Iran says its nuclear program is for peaceful purposes.

The sanctions came even as Israel and Hamas signed a Gaza ceasefire and hostage deal, which if fully implemented, would bring the two sides closer than any previous effort to halt a war that had evolved into a regional conflict, drawing in countries such as Iran, Yemen and Lebanon.

Treasury said it was the fourth round of sanctions in which the administration targeted China-based refineries that continue to purchase Iranian oil.

"The Treasury Department is degrading Iran's cash flow by dismantling key elements of Iran's energy export machine,” said Treasury Secretary Scott Bessent.

Trump, at a Cabinet meeting in the White House after the sanctions were released, said Iran told the administration it was in favor of the Israel-Hamas ceasefire and hostage deal and that the U.S. would work with Tehran.

"We'd like to see them be able to rebuild their country too, but they can't have a nuclear weapon," said Trump, who said on Thursday he will be leaving for the Middle East soon.

Despite waves of U.S. sanctions, Iran continues to export large amounts of oil.

United Against a Nuclear Iran, which tracks the country's petroleum shipments, said Iran's oil exports in September set a new high for the year of about 63.2 million barrels, worth about US$4.26 billion. UANI said September's growth in sales was likely due to stockpiling ahead of the resumption of U.N. sanctions on Iran.

The State Department said the U.S. also designated the first China-based terminal, Jiangyin Foreversun Chemical Logistics, for receiving Iranian-origin petrochemical products.

The Chinese embassy in Washington and Iran's mission to the United Nations in New York did not immediately respond to requests for comment.