US Sanctions on China's Hengli Petrochemical Intensify Iran Oil Restrictions
US sanctions on China's Hengli mark escalation in Iran oil crackdown | Explained
Hindustan Times
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The US Treasury has imposed sanctions on China's Hengli Petrochemical (Dalian) Refinery for allegedly purchasing billions of dollars in Iranian oil, marking a significant escalation in efforts to limit Tehran's oil revenue. Hengli, which operates a major refining complex in Dalian, denies these allegations and plans to contest the sanctions.
- 01US sanctions target Hengli Petrochemical for alleged Iranian oil purchases.
- 02Hengli operates a major refining complex in Dalian, China.
- 03The sanctions follow a lapse of a 30-day waiver on Iranian oil imports.
- 04Hengli's shares dropped by 10% following the sanctions announcement.
- 05China continues to defend its trade with Iran despite US sanctions.
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On Friday, the US Treasury imposed sanctions on Hengli Petrochemical (Dalian) Refinery, accusing it of purchasing billions of dollars in Iranian oil. This action represents a significant escalation in the US's ongoing campaign to curb Iran's oil revenue, particularly as Hengli is the largest Chinese refiner targeted since the US renewed its crackdown on Iranian oil exports in 2019. The sanctions come after a 30-day waiver on Iranian crude oil imports expired and follow statements from US Treasury Secretary Scott Bessent warning of potential sanctions against Iranian oil buyers. Following the announcement, Hengli's shares plummeted by 10%. In response, Hengli Petrochemical denied the allegations, asserting that it has sufficient crude inventories and plans to continue transactions in Chinese yuan. The sanctions are expected to impact Hengli's operations and could further complicate China's oil trade with Iran, as the country remains the largest importer of Iranian oil. Beijing has consistently defended its trade relations with Iran, labeling US sanctions as illegal.
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The sanctions could disrupt Hengli's operations and affect China's overall oil trade with Iran, potentially leading to increased oil prices and supply chain challenges for Chinese refiners.
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