U.S. Launches Sanctions from State and Treasury on Iranian Petrochemicals

The Trump administration launched one of its most wide-reaching efforts to date, targeting buyers, sellers, traders, facilitators, and vessels and terminals involved in Iran’s petrochemical industry, as well as expanding the sanctions on the oil and petroleum sectors. Treasury listed over 50 individuals, entities, and vessels, while State listed approximately 40 in the coordinated effort designed to further hem in Iran’s energy exports.

The sanctions continue to expand beyond Iran, targeting entities involved in the trade of Iranian petroleum and petrochemical products, noted the State Department. It highlighted that its efforts included the first China-based terminal that the U.S. says is receiving Iranian-origin petrochemical products. The designations include some of the largest buyers of Iranian petrochemical products (by volume and value) as well as the vessels used for transport.

“The United States will continue to take action against the network of terminal operators, port agents, shippers, brokers, and service providers involved in the trade of Iranian crude oil, petroleum products, and petrochemical products,” warns the State Department.

It asserts that Iran’s petrochemical industry and exports have grown in recent years. Like oil products, it says petrochemical products are frequently transshipped through intermediaries in third countries to obfuscate their origin.

In addition to the Chinese petrochemical terminal operator, Jiangyin Foreversun Chemical Logistics, located in Jiangyin, China, State lists logistics companies based in China and registered in Singapore, as well as traders in Turkey, India, the United Arab Emirates, as well as Iran.

Vessel management companies are also being sanctioned. Among the 10 vessels being listed by the State Department are ships registered in the Cook Islands, Palau, and Panama.

“This is the fourth round of sanctions where the Trump administration has targeted China-based refineries that continue to purchase Iranian oil,” noted Treasury, commenting on its coordinated sanctions announcement.

The Treasury Department is also targeting companies involved in the sale and shipment of Iranian LPG to Sri Lanka. It links in companies based in the UAE, Hong Kong-based shell companies, and others.

It also includes another independent Chinese teapot refinery in Shandong Province (Jincheng Petrochemical Group), which it asserts has purchased millions of barrels of Iranian oil since 2023. An additional target is a crude oil terminal (Rizhao Shihua Crude Oil Terminal, in Lanshan Port.

The list of tankers cited by Treasury incorporates vessels registered in Comoros, Panama, Gambia, and Hong Kong, and includes tankers as well as gas carriers. The sanctions are also extended to Singapore-based Anglo Premier Shipping, the operator of Singapore-flagged tugs, which the administration says has enabled ship-to-ship transfer operations, as well as the operator of a Mongolian-flagged tug.