US Imposes New Large-Scale Sanctions Targeting China-Iran Shadow Trade

The US has escalated sanctions against the 'shadow trade' between China and Iran, targeting 40 shipping companies, vessels, and a Chinese refinery. This move aims to disrupt the illicit flow of Iranian crude oil to China, signaling intensified efforts to enforce sanctions against Tehran.
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  • 📰 Published: April 25, 2026 at 13:20
  • 🔍 Collected: April 25, 2026 at 13:31 (11 min after Published)
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US-Iran War Key News

Central News Agency

(Central News Agency Washington, 24th, comprehensive foreign report) The United States intensified its crackdown on the clandestine petrochemical trade between Beijing and Tehran ahead of the Trump-Xi meeting. The US Treasury Department today imposed large-scale sanctions on 40 shipping companies and vessels, as well as a Chinese refinery, expanding its efforts to combat Iran-related maritime operations.

The Washington Post noted that most of the sanctioned vessels are either operating in connection with China or have crude oil destined for China as their final destination.

These sanctions come less than a week after the container ship Touska was seized. The Touska, an Iranian-flagged container ship listed on the sanctions list, was seized by the US military on the 19th en route to Iran. Before heading to Iran, the Touska had docked at a Chinese port, which is considered a stronghold for loading chemical precursors for rocket fuel. US President Trump, in an interview on the 20th, stated that the US found "gifts from China" on board, and they were "not good things."

This week, two other ships, M/T Majestic and M/T Tifani, were seized by the US military in the Indian Ocean; US officials stated that these two ships carried nearly 4 million barrels of Iranian crude oil.

China is the world's largest buyer of Iranian crude oil and a significant source of chemicals and equipment used by the Tehran military. Analysts estimate that before the Iran War, China imported approximately 1.4 million barrels of Iranian oil daily, accounting for about 13% of its total imports.

The oil trade between China and Iran primarily operates through an underground network consisting of hundreds of oil tankers, shell companies, and intermediaries, functioning outside normal legal channels. These anonymously owned vessels conduct ship-to-ship transfers at sea, circumventing sanctions, with the oil ultimately flowing to China's so-called "teapot" refineries, which are small refineries willing to accept discounted crude oil from the gray market.

One of the newly sanctioned entities is Hengli Petrochemical Company in Dalian, China, one of China's largest "teapot refineries." The US Treasury Department stated today that Hengli Petrochemical purchases billions of dollars worth of Iranian petroleum products.

Since the outbreak of the Iran War, few Chinese vessels have crossed the Strait of Hormuz, which Beijing confirmed was a result of an agreement with Tehran. After Trump imposed a blockade on vessels entering and exiting Iranian ports, several more China-related vessels abandoned passage through the strait, including the sanctioned Chinese oil tanker "Rich Starry."

Although the US has imposed sanctions on hundreds of vessels, entities, and individuals identified as part of Iran's "shadow fleet," actual seizures of China-related vessels or goods by the US military remain rare. Beijing, however, has not prevented sanctioned vessels from entering Chinese ports or dealing with Chinese companies.

Analysts point out that if seizing dozens of sanctioned vessels involved in illicit trade is as arduous as the Touska incident (which involved a 6-hour standoff), it would place a significant burden on the US military.

Isaac Kardon, a senior fellow at the Carnegie Endowment for International Peace, said: "There aren't that many destroyers out there. The number of ships capable of conducting these types of missions is limited, and they have other missions." (Compiled by Chen Yi-wei) 1150425

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