Lock the White House Watch Newsletter for free
Your Guide to Washington and the World’s 2024 US Election Means
The Trump administration has imposed sanctions on Chinese refiners to buy Iranian crude oil as Washington is increasingly pushing Beijing to curb oil purchases from the country to increase pressure on Tehran.
The Treasury Department has targeted Chandon Schengking chemicals, which allegedly bought more than $1 billion in Iranian crude oil from sources, including the front company of the Islamic Revolutionary Guard, in violation of US sanctions.
The measure marks the second time in a month that President Donald Trump sanctioned a “teapot” refinery. This is the term for an independent Chinese refinery, the leading buyer of Iranian crude oil.
“A refinery, company or broker that chooses to buy Iranian oil or promote Iran’s oil trade is taking serious risks,” Treasury Secretary Scott Bescent said.
“The US is committed to disrupt all parties providing support to Iran’s oil supply chain, which the administration uses to support terrorist proxies and partners,” he added.
The Treasury has also imposed sanctions on several companies and vessels to help transport Iran to China on ships that are part of a “shadow fleet” of vessels that are trying to avoid detection.
The package marked the sixth round of sanctions Trump placed in Iran as part of his “maximum pressure campaign.”
They come when Washington and Beijing are in the midst of a trade war that Trump launched in January and has escalated in recent weeks. The US has imposed a 145% tariff on imports from China and retaliated with a 125% tariff on American goods.
The Trump administration has also stepped up pressure on China over Iran’s purchase of crude oil. The Biden administration has been criticized by Republicans for not putting more pressure on Beijing to halt oil imports from Iran in violation of US sanctions.
Dennis Wilder, president George W. Bush’s White House Asia adviser, said former President Joe Biden “turned a blind eye to China’s purchase of up to 90% of Iran’s oil exports.”
“This was due to concerns that a fully enacted embargo on Iran would lead to a sharp rise in oil prices that would affect U.S. consumers,” Wilder said. “China’s oil purchases have helped to build close ties between Tehran and Beijing. China is profiting by gaining greater commercial access in the region.”
Recommended
New sanctions arise as the Trump administration is in talks that it is cutting down Tehran and the Islamic Republic’s nuclear programs and spurring hopes of a breakthrough in one of the Middle East’s most challenging issues.
Trump envoy Steve Witkov held indirect talks with Iranian Foreign Minister Abbas Aragut in Oman on Saturday. The pair will hold their second talk next Saturday.
The Chinese Embassy in Washington was approached for comment.
Additional Reports by Guy Chazan of Washington
