The U.S. Treasury Department has approved more than 20 companies that are involved in delivering billions of dollars of Iranian crude oil to China, the latest move by the Trump administration’s “maximum pressure” campaign against Tehran.
The Treasury Ministry’s Foreign Assets Control Office said it is sanctioning nearly two dozen groups involved in Iran’s “illegal international oil trade.”
"Today's action highlights the focus of our continued focus on pressure on all aspects of Iran's oil trade, which the regime uses to fund its dangerous and unstable activities," said Finance Minister Scott Bessent.
He said that as long as the regime continues to support the spread of terrorism and deadly weapons, the United States will continue to target this main source of income. ”
The operation targets many Hong Kong-based entities, the former company of Sepehr Energy, a commercial branch of the Iranian Armed Forces General Staff.
The U.S. said Sepehr Energy is using the companies, including Xin Rui Ji, Star Energy and Milen Trading, and receiving transportation of Iranian oil delivered to the "Teapot" refinery, a long considered the main buyer of Iranian crude.
It said the companies were founded in China and operated there, but their business activities were controlled by Sepehr Energy and its officials, at least one of them was approved by the United States.
The Ministry of Finance said that once oil sales are completed, the proceeds will be remitted back to AFGS from the cutting-edge companies. It added that revenue from sales underwrites “the development of ballistic missiles and drones and the financing of regional terrorist organizations.”
The U.S. is also sanctioning Singapore, which it says confuses the oil's Iranian origins through ship transfers, oil mixing and document forgery, with many of its Hong Kong-based companies saying it operates as a middleman between Sepehr Energy and Chinese refreshment refineries.
The Treasury's action also targeted the fleet of the aging "Shadow Fleet" tankers used by Sepehr Energy to promote Iran's oil transport.
The latest sanctions are part of a widespread crackdown on Chinese entities, with the United States accusing them of buying or promoting the purchase of Iranian crude oil. They are part of Washington's strategy to put pressure on Iran as it negotiates its nuclear program.
President Donald Trump said in a speech at the U.S. Sudi Investment Conference on Tuesday that he wanted to avoid conflict with Iran, providing Tehran with a "new and better path to a more promising future."
But he added: "If Iran's leaders reject this olive tree branch...we have no choice but to create huge maximum pressure (and) increase Iranian oil exports to zero."
In March, the Ministry of Finance imposed sanctions on China's "tea pot" oil refineries for the first time. It targeted the second such facility last month.
The U.S. renewed efforts to combat Iranian oil exports mark the move after criticizing the Biden administration for not taking strong enough action.
In April, the Treasury Ministry sanctions on Shandong Shengxing Chemical, allegedly buying more than $100 million in Iranian crude oil, violating U.S. sanctions from leading companies including Tehran’s Islamic Revolutionary Guard.
Beijing has repeatedly criticized U.S. sanctions and accused Washington of adopting "long-arm jurisdiction" that undermines international trade.