- New U.S. Sanctions Disrupt Iran’s Shadow Fleet and Oil Trade Networks.
- Treasury Sanctions Chinese Firm, Global Entities for Aiding Iran’s Oil Sales.
- Billion-Dollar Oil Deals With Iran Spark New U.S. Sanctions on Chinese Refinery.
On April 16, 2025, the United States intensified its enforcement of sanctions against Iran’s oil exports with new measures against a Chinese refinery and several entities involved in the transport of Iranian crude. The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced that the targeted Chinese refinery in Shandong Province had bought more than $1 billion in Iranian oil, reports Marine Insight.
Sale of Iranian crude
By OFAC, much of this oil came from an Iranian front company associated with the IRGC-QF. From March 2020 through January 2023, the refinery issued more than $800 million to the front company, which was used to sell Iranian crude and launder billions of dollars through the U.S. financial system.
Seizure of Illicit Funds and Broader Crackdown
The U.S. Treasury announced the seizure of $108 million related to these illegal transactions. This recent enforcement is OFAC’s second sanctioning of an independent Chinese refinery for its role in Iranian oil commerce. It is also the sixth wave of sanctions under the auspices of National Security Presidential Memorandum 2 (NSPM-2), first issued by President Trump and reaffirmed under current U.S. policy.
Targeting Iran’s Shadow Oil Fleet
Besides approving the Chinese refinery, the Treasury also hit several vessels used in the shipment of Iranian oil, mainly to Chinese buyers. These tankers are said to have indulged in manipulative shipping practices, including ship-to-ship transfers and misleading documentation, in order to cover up the Iranian crude’s source.
In the first half of 2025 alone, these ships are estimated to have offloaded millions of barrels of Iranian oil. They travelled in global waters, including off Southeast Asia, and made deals with already-sanctioned Iranian tankers.
Sanctions on Shipping Companies and Operators
Some shipping companies and operators associated with these ships have also been sanctioned. These companies, which were registered in Panama, Malaysia, the Marshall Islands, Hong Kong, and elsewhere, were recognized as being directly involved in running or owning ships that supported Iranian petroleum transport. The U.S. government designated them for carrying out business in Iran’s petroleum industry—an industry specifically targeted by U.S. sanctions.
The related ships have now been declared blocked property, i.e., all interests in them held by sanctioned parties are frozen within U.S. jurisdiction. These steps are a part of Washington’s wider campaign to limit Iran’s capacity to raise revenue through the sale of oil, which U.S. officials assert is utilised to fund the Iranian regime and allied terrorist organisations.
Strategic Message to Iran and Global Partners
The latest round of sanctions is a strong indication of the U.S. resolve to implement bans on Iranian oil exports. It also seeks to discourage international players—mainly in Asia—to participate in transactions that benefit Iran’s energy industry, particularly when connected to the IRGC-QF. The Treasury stressed that it will persist in dismantling these networks through financial pressure and maritime monitoring initiatives.
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Source: Marine Insight
