US places sanctions on Chinese refinery over Iran oil purchases

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The Trump administration has imposed sanctions on a Chinese language refinery for purchasing Iranian crude oil, as Washington more and more pushes Beijing to rein in oil purchases from the nation to extend the stress on Tehran.

The Treasury division focused Shandong Shengxing Chemical for allegedly shopping for greater than $1bn in Iranian crude oil from sources that included a entrance firm for Iran’s Islamic Revolutionary Guard Corps in violation of US sanctions.

The measure marks the second time in a month that President Donald Trump has put sanctions on a “teapot” refinery — a time period for unbiased Chinese language refineries which are the principle patrons of Iranian crude.

“Any refinery, firm, or dealer that chooses to buy Iranian oil or facilitate Iran’s oil commerce locations itself at critical danger,” mentioned Treasury secretary Scott Bessent.

“The US is dedicated to disrupting all actors offering assist to Iran’s oil provide chain, which the regime makes use of to assist its terrorist proxies and companions,” he added.

The Treasury division additionally imposed sanctions on a number of corporations and vessels for serving to Iran transport oil to China on ships which are a part of a “shadow fleet” of vessels that search to keep away from detection.

The bundle marked the sixth spherical of sanctions that Trump has positioned on Iran as a part of his “most stress marketing campaign”.

They arrive as Washington and Beijing are in the midst of a commerce conflict that Trump launched in January and escalated in latest weeks. The US has imposed a 145 per cent tariff on imports from China, which has retaliated with a 125 per cent tariff on American items.

The Trump administration has additionally stepped up stress on China over its purchases of Iranian crude. The Biden administration was criticised by Republicans for failing to exert extra stress on Beijing to cease importing oil from Iran in violation of US sanctions.

Dennis Wilder, who was a White Home Asia adviser to president George W Bush, mentioned former president Joe Biden “turned a blind eye to China’s buy of as much as 90 per cent of Iran’s oil exports”.

“This was, largely, out of concern {that a} absolutely enforced embargo on Iran would result in a pointy rise in oil costs that might have an effect on US shoppers,” Wilder mentioned. “Chinese language oil purchases have helped construct a detailed relationship between Tehran and Beijing through which China advantages by gaining larger industrial entry within the area.”

The brand new sanctions come because the Trump administration is holding talks with Tehran on curbing the Islamic republic’s nuclear programme, prompting hopes of a breakthrough in one of many Center East’s most intractable issues.

Steve Witkoff, Trump’s particular envoy, held oblique talks with Iranian international minister Abbas Araghchi in Oman on Saturday. The pair are as a result of maintain a second spherical of talks this coming Saturday.

“We firmly oppose the US abuse of unilateral sanctions and ‘long-arm jurisdiction,’ which undermines worldwide commerce order and guidelines, disrupts regular financial and commerce exchanges, and infringes upon the reputable rights and pursuits of Chinese language corporations and people,” mentioned Liu Pengyu, the Chinese language embassy spokesperson in Washington.