U.S. Imposes Sanctions on Iranian Oil Trade Network in China
Summary
The Department of the Treasury imposed sanctions on a major independent Chinese refinery and approximately 40 other targets, including vessels and their respective owners or managers, that serve as critical lifelines for Iran's oil exports. The action was taken pursuant to E.O. 13902, which targets persons operating in Iran's petroleum and petrochemical sectors, and further implements the President's National Security Presidential Memorandum 2 directing maximum pressure against Iran. This measure targets the Iranian regime's primary revenue streams that fund terrorism and regional destabilization.
“The Department of the Treasury imposed sanctions today on a major, independent Chinese refinery and nearly 40 other targets – vessels and their respective owners or managers – that serve as critical lifelines for Iran's oil exports.”
Companies in the energy trading, maritime shipping, and financial sectors with exposure to Iranian crude oil or petroleum products should immediately review counterparty lists against the newly designated Chinese refinery and associated vessel network. OFAC's 'willful violation' standard for criminal penalties requires only knowledge of the sanctions nexus, making even inadvertent transactions potentially actionable. Maritime operators should pay particular attention to vessel ownership and management chains that may overlap with the approximately 40 designated entities.
About this source
The US State Department press releases page publishes every readout, designation, MOU signing, presidential certification, and policy statement from Foggy Bottom: bilateral and multilateral diplomatic actions, sanctions program announcements, foreign aid notifications, USAID program changes, and emergency consular advisories. Around 120 releases a month. Many State releases announce or accompany Treasury-OFAC actions, so this feed often previews sanctions and trade restrictions before the technical OFAC notice lands. Watch this if you track US foreign policy, advise on country risk, manage sanctions exposure, or follow specific bilateral relationships. Recent examples: a US-Bolivia $12 million infectious diseases MOU, the Secretary of State meeting Haiti's prime minister, sanctions designations on entities tied to Iran's missile and UAV programs.
What changed
The Department of the Treasury imposed sanctions on a major independent Chinese refinery and approximately 40 vessels and associated owners or managers operating as critical infrastructure for Iran's illicit oil exports. The action was taken under Executive Order 13902, which specifically targets persons operating in Iran's petroleum and petrochemical sectors, and furthers the President's National Security Presidential Memorandum 2 directing maximum pressure against Iran.
Energy companies, shipping operators, financial institutions, and traders with exposure to Iranian crude oil or petroleum products, particularly those with connections to the designated Chinese refinery or involved in the associated vessel network, should immediately conduct sanctions screening against all newly designated parties. Any ongoing transactions with these parties must be ceased. Companies in the maritime, energy trading, and financial sectors should review their counterparty due diligence and Know Your Customer protocols for connections to Iranian oil trade.
What to do next
- Screen all counterparties against OFAC sanctions lists for the newly designated refinery and approximately 40 vessel/owner/manager targets
- Cease any transactions with the newly designated parties immediately upon confirmation of identity
Penalties
Civil penalties up to the greater of $1,000,000 per violation or twice the amount of the underlying transaction; criminal penalties including fines up to $1,000,000 and up to 20 years imprisonment for willful violations
Archived snapshot
Apr 25, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
Home Office of the Spokesperson Press Releases U.S. Sanctions Intensify Pressure on Iran’s Oil Trade Network in China
U.S. Sanctions Intensify Pressure on Iran’s Oil Trade Network in China
Press Statement
Thomas "Tommy" Pigott, Department Spokesperson
April 24, 2026
The United States is taking decisive action to disrupt Iran’s illicit oil trade, the Iranian regime’s primary revenue streams that fund its terrorism and destabilization of the region.
The Department of the Treasury imposed sanctions today on a major, independent Chinese refinery and nearly 40 other targets – vessels and their respective owners or managers – that serve as critical lifelines for Iran’s oil exports. This action cuts revenue streams that fund the regime’s destabilizing activities across the Middle East. The Administration’s maximum pressure campaign will hold Tehran accountable for its regional aggression and threats to American interests.
These measures underscore the U.S. commitment to disrupting Iran’s ability to fund terrorism, support proxy forces, and threaten regional stability. The Administration remains focused on ensuring the Iranian regime cannot use illicit oil revenues to advance its malign agenda while the Iranian people continue to suffer from economic mismanagement and repression.
The United States will intensify economic pressure on Iran and the international network that sustains its illicit energy trade as a part of Economic Fury.
Today’s action is being taken pursuant to E.O. 13902, which targets persons operating in Iran’s petroleum and petrochemical sectors. These actions further the President’s National Security Presidential Memorandum 2 (NSPM-2), which directs the imposition of maximum pressure against Iran. For more information on today’s action, please see the Department of the Treasury’s press release Press Release.
Tags
Bureau of East Asian and Pacific Affairs Bureau of Near Eastern Affairs China Division for Counter Threat Finance and Sanctions Iran Office of the Spokesperson Sanctions and Designations
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