The United States is taking decisive action to disrupt Iran’s illicit oil trade, the Iranian regime’s primary revenue stream that funds its terrorism and destabilizes the region.
The Department of the Treasury imposed sanctions on a major, independent Chinese refinery and nearly 40 other targets – vessels and their respective owners or managers – that serve as critical lifelines for Iran’s oil exports. The United States’ maximum pressure campaign will hold Tehran accountable for its regional aggression and threats to American interests.
In particular, the Treasury Department’s Office of Foreign Assets Control, or OFAC, has designated Luqing Petrochemical and its chief executive officer for purchasing and refining hundreds of millions of dollars’ worth of Iranian crude oil. This includes oil from vessels linked to the Foreign Terrorist Organization, Ansarallah, commonly known as the Houthis, and the Iranian Ministry of Defense of Armed Forces Logistics (MODAFL).
Luqing Petrochemical is known as a teapot refinery - small, privately owned oil refineries primarily located in Shandong province, China. It was designated for operating in the petroleum sector of the Iranian economy. Chinese national Wang Xueqing serves as the chief executive officer and legal representative of Luqing Petrochemical and was designated for his dealings on behalf of Luqing Petrochemical.
“Teapot refinery purchases of Iranian oil provide the primary economic lifeline for the Iranian regime, the world’s leading state sponsor of terror,” said Secretary of the Treasury Scott Bessent.
OFAC also imposed sanctions on 19 entities and vessels responsible for shipping millions of barrels of Iranian oil, comprising part of Iran’s “shadow fleet” of tankers supplying teapot refineries like Luqing Petrochemical.
This marks the fourth round of sanctions targeting Iranian oil sales since President Donald Trump issued National Security Presidential Memorandum 2 ordering a campaign of maximum pressure on Iran. These measures underscore the U.S. commitment to disrupting Iran’s ability to fund terrorism, support proxy forces, and threaten regional stability.
The United States remains focused on ensuring the Iranian regime cannot use illicit oil revenues to advance its malign agenda while the Iranian people continue to suffer from economic mismanagement and repression.
“The United States,” said Secretary Bessent, “is committed to cutting off the revenue streams that enable Tehran’s continued financing of terrorism and development of its nuclear program.”