Trump Administration Targets Chinese Refiners to Cut Iran Oil

The Trump administration is preparing to escalate economic sanctions against Chinese refineries that purchase approximately 90 percent of Iranian oil exports. This move follows a warning from President Donald Trump that any nation providing a "lifeline to Iran" will face economic consequences.

The U.S. Treasury Department's Office of Foreign Assets Control has already designated several independent Chinese refineries, including Hengli Petrochemical (Dalian) Refinery Co. Ltd., for processing billions of dollars of Iranian oil. U.S. officials have also targeted a shadow banking system used to settle these oil sales in Chinese yuan. These measures build upon a U.S. naval blockade and military operations against the Iranian regime conducted in late February, which have already caused a decline in oil deliveries to China.

U.S. Treasury official Scott Bessent urged Beijing to cooperate, noting China's reliance on energy from the Persian Gulf. The Ministry of Foreign Affairs of the People's Republic of China has opposed the pressure campaign, with spokesman Lin Jian stating that sanctions and pressure would not resolve the conflict.