US Targets Chinese Refinery and Oil Terminal Operators with New Sanctions

the U.S. has rolled out fresh sanctions targeting Hebei Xinhai chemical Group Co., Ltd, a Chinese self-reliant oil refinery, along with three oil terminal operators. This move is part of an effort to curb Iran’s oil trade, which the U.S. claims funds terrorism and fuels instability in the Middle East.

According to the Treasury Department, these entities have been involved in significant transactions involving Iranian oil shipments to China, breaching existing U.S. sanctions. the measures fall under Executive Order 13902 and Executive Order 1846, both aimed at Iran’s petroleum sector and its broader oil export activities.

Hebei Xinhai Chemical Group is based in Cangzhou and stands as one of the largest privately owned refineries outside shandong province. It boasts a capacity of 120,000 barrels per day (bpd) and includes a bitumen plant that produces around 5 million metric tons annually.Additionally, it holds one of the largest crude import quotas for its size at 74,000 bpd.

This marks the third instance where a Chinese “teapot” refinery—an informal term for smaller independent refiners—has faced U.S. sanctions due to dealings with Iranian oil.

In tandem with this action against Hebei xinhai Chemical Group, three companies managing terminals at Dongying Port in Shandong have also been sanctioned: Baogang (Dongying Donggang) Logistics and Warehousing Co., Ltd., Shandong Baogang International Port Co., Ltd.,and Shandong Jingang Port Co., ltd. these firms reportedly received over one million barrels of Iranian crude at their facilities.

China has responded strongly to these sanctions; a spokesperson from its embassy in Washington accused the U.S. of misusing unilateral sanctions that disrupt legitimate trade practices between China and Iran.

The list of sanctioned entities extends beyond just refineries; it includes various companies involved in facilitating Iranian oil shipments through what’s known as Iran’s “shadow fleet.” This covert network operates under international radar to transport oil despite existing restrictions.

Newly added companies include Embrace Que Limited and Hong Kong Prime Trading Co., among others like Star Twinkle Shipping Limited whose vessels such as STAR TWINKLE 6 are now considered blocked property by U.S authorities—meaning their assets will be frozen within American jurisdiction.

An analyst from Rapidan Energy Group noted that while these new measures ramp up pressure on Chinese importers, they still have limitations regarding their overall impact on larger market players.

Previous sanctions had already created hurdles for smaller refiners trying to secure Iranian crude; some resorted to rebranding products just to stay off regulators’ radars altogether. Now it truly seems even bigger independent refiners are becoming wary about engaging with Iran due to fear of repercussions from these latest actions.