Oil Dealings With Iran Lead to US Action on Chinese Refinery

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Tejaswini Deshmukh
Tejaswini Deshmukh
Tejaswini Deshmukh is the contributing editor of RegTech Times, specializing in defense, regulations and technologies. She analyzes military innovations, cybersecurity threats, and geopolitical risks shaping national security. With a Master’s from Pune University, she closely tracks defense policies, sanctions, and enforcement actions. She is also a Certified Sanctions Screening Expert. Her work highlights regulatory challenges in defense technology and global security frameworks. Tejaswini provides sharp insights into emerging threats and compliance in the defense sector.

The United States has announced serious sanctions against a refinery located in China’s Shandong province. The reason? This refinery was caught buying a huge amount of oil from Iran—more than $1 billion worth. US officials say that this oil came through secret deals and included shipments tied to Iran’s powerful military group, the Revolutionary Guard.

This move is part of a larger effort by the US government to stop Iran from earning money by selling oil, especially if that money is going to fund dangerous groups or harmful activities. According to US authorities, the oil trade with Iran is not just a simple business deal—it helps Iran support militant groups that cause trouble in places like Yemen, Lebanon, and Gaza.

In total, the refinery is said to have received many shipments, and US officials believe that several ships and companies were involved in helping move the oil. Now, those ships and companies have also been added to the US sanctions list, meaning they too are facing strict punishment.

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Why the US Is Taking Action

Sanctions are like a big “stop sign” in international business. When a country or company gets sanctioned by the US, they are cut off from doing business with US companies and banks. It’s also very risky for other countries to work with them because they might get into trouble too.

The US government says the goal is to stop the money from oil sales from reaching Iran’s government and military groups. Iran has been accused of using the profits from oil to support violent groups, including the Houthis in Yemen who attack ships, and other groups like Hezbollah and Hamas. These groups are known for causing unrest and violence in their regions.

The US also warned that any refinery, broker, or company that helps Iran sell oil could face serious consequences. That’s a clear message not just to the refinery in China, but to businesses around the world: don’t help Iran break the rules.

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China’s Response and Global Ripples

The announcement of the sanctions came on the same day that Iran said it would meet with US officials in Rome to talk about its nuclear program. These talks are meant to reduce tensions, but the new sanctions show that the US is still taking a hard line when it comes to Iran’s oil business.

Meanwhile, the Chinese government wasn’t happy about the US decision. A spokesperson from China’s embassy in Washington said that the US is hurting international trade by using sanctions. They believe these actions make it harder for countries to do normal business and that they’re unfair to Chinese companies.

So far, no one from Iran’s United Nations office has responded to the news about the sanctions.

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This move is part of a larger campaign by the United States to block Iran’s secret oil trade, which is often carried out using a group of disguised or hidden ships called the “shadow fleet.” In the past, the US has already punished many people and ships involved in these kinds of deals.

The new sanctions are meant to make it even harder for Iran to make money from oil sales, especially by stopping countries like China from buying that oil. US officials say they are determined to stop any business that helps Iran earn money for violent purposes.

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