The US Treasury's Office of Foreign Assets Control (OFAC) imposed sanctions Thursday on Shandong Shouguang Luqing Petrochemical Co., Ltd, a Chinese "teapot" refinery, and its CEO for purchasing Iranian crude oil. The company, based in Shandong Province, has acquired oil worth approximately $500 million, including from vessels linked to Iran's Ministry of Defense and the Houthis.
Additionally, the US sanctioned 19 entities and vessels forming part of Iran’s "shadow fleet," which supplies oil to teapot refineries. The State Department also sanctioned Huaying Huizhou Daya Bay Petrochemical Terminal Storage, a Chinese oil terminal, for storing Iranian crude from a sanctioned vessel.
Treasury Secretary Scott Bessent said Iranian oil sales are a key financial source for Tehran, which the US considers the "world's leading state sponsor of terror." "The United States is committed to cutting off the revenue streams that enable Tehran’s continued financing of terrorism and development of its nuclear program," he mentioned.
