U.S. Sanctions Strike China-Iran Oil Trade 'Teapot'

The U.S. has introduced new sanctions targeting entities including a Chinese 'teapot' refinery and vessels linked to Iran's oil supply. These sanctions are part of Washington's ongoing efforts to reduce Iran's oil exports and restrict funding for nuclear and militant activities. China continues its trade with Iran, challenging U.S. sanctions.

The U.S. administration announced a fresh wave of sanctions on Thursday, targeting entities involved in Iran's oil trade, including a Chinese 'teapot' refinery and several vessels. This marks the fourth set of sanctions as part of Washington's strategy to curb Iran's oil exports under President Trump's 'maximum pressure' campaign.

The U.S. Treasury named the targeted refinery as Shandong Shouguang Luqing Petrochemical Co., Ltd. U.S. Treasury Secretary Scott Bessent emphasized the sanctions aim to cut off economic supports to Tehran, which remains a key sponsor of state terror and a supporter of the Houthis in Yemen.

Despite U.S. restrictions, China continues to import Iranian oil, leveraging a trading system that largely functions outside the dollar-based financial system. By targeting smaller entities and vessels, Washington hopes to apply diplomatic pressure while avoiding significant economic backlash from China.

(With inputs from agencies.)