The United States intensified pressure on Iran’s energy sector on Wednesday by imposing new sanctions. The measures specifically target Iranian oil exports and penalize a China-based independent ‘teapot’ refinery for purchasing over $1 billion of crude oil from Tehran.
The U.S. Treasury Department stated that the sanctions are designed to further isolate Iran’s oil trade and dissuade Chinese companies from conducting business with Iran. The move is part of President Trump’s renewed ‘maximum pressure’ campaign, which aims to reduce Iranian oil exports to zero while limiting Tehran’s nuclear plans and regional influence.
The latest sanctions seek to dismantle Iran’s ‘shadow fleet,’ targeting companies and vessels involved in covert crude shipments to China. This marks the sixth round of measures under Trump’s renewed hardline approach to Iran.
One of the sanctioned entities is a small, independent Chinese refinery belonging to a network of teapot refiners that operate with less regulation and have limited connections to the U.S. financial system. While China’s state-run oil firms have mostly stopped buying Iranian oil to avoid U.S. sanctions, independent refiners continue imports using yuan and intermediaries to bypass the dollar and U.S. oversight.
U.S. Treasury Secretary Scott Bessent cautioned that refineries, companies, and brokers involved in purchasing Iranian oil or enabling its trade face significant risks. Alongside these sanctions, the Treasury released updated guidance for international shipping and maritime industries, emphasizing the importance of monitoring Iranian oil shipments. The advisory stressed that Iran relies on a hidden, intricate network to conceal the origins and destinations of its exports.
State Department spokesperson Tammy Bruce affirmed the administration’s unwavering position, stating that all sanctions would be strictly implemented under the Trump Administration’s ‘maximum pressure’ campaign on Iran. She warned that as long as Iran seeks to generate oil revenue to support destabilizing activities, the U.S. will hold both Iran and its partners in sanctions evasion fully accountable.
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