The U.S. Treasury Department has imposed sanctions on over 20 companies suspected of shipping Iranian crude oil to China, marking the latest escalation in the Trump administration’s “maximum pressure” campaign against Iran.
The U.S. Treasury’s Office of Foreign Assets Control (OFAC) has targeted entities involved in what it describes as the “illegal international oil trade” with Iran. The sanctions focus on the alleged use of front companies and intermediaries to conceal the origins of Iranian oil.
In a statement, U.S. Treasury Secretary Steven Mnuchin emphasized the administration’s continued efforts to increase pressure on Iran’s oil trade, which he noted funds the country’s “destabilizing activities” and supports terrorism and weapons proliferation.
Mnuchin said, “As long as the regime continues to support terrorism and deadly weapons proliferation, the United States will continue to target this critical source of revenue.”
The sanctions primarily target Hong Kong-based entities accused of acting as front companies for the Iranian Armed Forces General Staff’s commercial arm, Sepehr Energy. The Treasury Department alleges that Sepehr Energy is using companies such as Xin Rui Ji, Star Energy, and Milen Trading to facilitate shipments of Iranian oil to China. These companies have long been seen as key players in facilitating Iran’s oil exports.
The Treasury added that the proceeds from these oil sales were funneled through shell companies back to the Afghan government-backed firm, funding the development of ballistic missiles, drones, and regional terrorist organizations.
Additionally, the Treasury imposed sanctions on Singapore-based Chinese company China Inspection and Quarantine Group (CIQ), accusing it of facilitating the oil trade through ship-to-ship transfers, oil blending, and falsifying documentation to obscure the Iranian origins of the crude oil.
The latest sanctions are part of a broader effort by the U.S. to target Chinese companies accused of purchasing or assisting in the purchase of Iranian crude oil. This is consistent with Washington’s strategy to apply pressure on Iran during negotiations over its nuclear program.
President Donald Trump, speaking at the U.S.-Saudi investment conference, reaffirmed his desire to avoid conflict with Iran while offering a “new pathway to a brighter future” for the country. However, he added, “If the leadership of Iran rejects this olive branch… we will have no choice but to apply maximum pressure and drive their oil exports to zero.”
This move follows earlier sanctions, including one imposed in March on a Chinese refinery involved in the purchase of Iranian oil. Last month, the U.S. also sanctioned a second Chinese refinery. The Biden administration has faced criticism for not taking a sufficiently hard stance on Iran, and these latest measures signify a renewed effort by the U.S. to curb Iran’s oil exports.
In April, the Treasury Department sanctioned Shandong Shengxing Chemical, accusing it of violating U.S. sanctions by purchasing Iranian oil from entities linked to Tehran’s Islamic Revolutionary Guard Corps (IRGC), totaling over $1 billion.
Beijing has repeatedly criticized the U.S. sanctions, accusing Washington of using “long-arm jurisdiction” to disrupt international trade.
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