Thread Content
On April 24, 2026, local time, the Office of Foreign Assets Control (OFAC) of the U.S. Treasury Department announced that China’s independent refiner Hengli Petrochemical (Dalian) Refining & Chemical Co., Ltd., along with several shipping companies suspected of being involved in the transport of Iranian oil, were added to the list of Specially Designated Nationals (SDNs). In addition, the U.S. Treasury Department announced sanctions against several Iran-related wallets, freezing their cryptocurrency assets worth approximately $344 million. U.S. Treasury Secretary Besant said on social media that this move is one of the financial sanctions imposed on Iran. The U.S. side stated that this action was taken in accordance with Executive Order 13902, which targets individuals operating in Iran’s oil and petrochemical sectors and is aimed at advancing the implementation of President **’s National Security Policy Memorandum 2 (NSPM-2). This memorandum forms the basis for the U.S. Treasury Department’s ongoing efforts to exert maximum economic pressure on Iran’s shadow banking, money laundering, and sanctions-evasion networks. Since February 2025, as part of this initiative, the Office of Foreign Assets Control (OFAC) has imposed sanctions on over 1,000 individuals, ships, and aircraft associated with Iran. This represents a significant escalation in the United States’ campaign of \"maximum pressure\" on Iran, as it marks the first time sanctions have been imposed directly on large Chinese refining end-users. Hengli Petrochemical is alleged to be \"one of Iran’s largest oil customers.\" According to OFAC statements, Hengli Petrochemical is accused of continuously purchasing Iranian crude oil since 2023, being \"one of Iran’s largest oil customers\" with purchase amounts reaching several billion dollars. The U.S. further stated that the crude oil received by the company was supervised by the oil sales agency under the General Staff of the Iranian armed forces, generating hundreds of millions of dollars in revenue for the Iranian military. The Dalian refining facility of Hengli Petrochemical has a daily crude oil processing capacity of around 400,000 barrels, and it is one of China’s largest private \"teapot\" refineries. Apart from Hengli Petrochemical, the sanctions also target around 40 shipping companies and oil tankers. The U.S. claims that these entities make up Iran’s “shadow fleet,” which is responsible for transporting Iranian oil to Asian markets such as China. Details of the sanctions: 10 Chinese companies and several associated vessels have been added to the SDN list. According to information provided by compliance analysis firms, the Chinese companies included in this SDN list are Hengli Petrochemical Dalian Refining & Chemical Co., Ltd., along with approximately 10 other entities such as COSTIN SHIPPING LIMITED, DOFA SHIPPING LTD, EXTENSIVE SHIPPING LIMITED, NICE GIFT LIMITED, TING TAO COMPANY LIMITED, XIFOIDES GROUP LIMITED, YEGUA TRADING LIMITED, LISBOA SHIPPING COMPANY LIMITED, and ZHOUSHAN YAOHAI SHIPPING CO., LTD; many of these entities are registered in Hong Kong. The ships subject to sanctions include LYNN (IMO 9352559), MAGNOLIA (IMO 9258519), STELLAR BEVERLY (IMO 9208069), COVENIO (IMO 9263227), GOLDEN SUNRISE (IMO 9183362), ZHEN ZHU (IMO 9290359), BANGUS (IMO 9308998), EDOR (IMO 9259317), among others; these ships are accused of delivering tens of millions of barrels of Iranian crude oil to China in total. Meanwhile, OFAC issued General License V regarding Iran, authorizing transactions that are typically associated with and necessary to gradually cease dealings with Hengli Petrochemical until 12:01 a.m. Eastern Daylight Time on May 24, 2026; however, any payments must be deposited into frozen interest-bearing accounts located in the United States. U.S. position: Continuously tightening Iran’s oil trade network. U.S. Treasury Secretary Besant stated in a declaration: “The U.S. Treasury will continue to tighten the network of ships, intermediaries, and buyers that Iran relies on to ship its oil to global markets.” 1 Any person or vessel that facilitates these oil flows through covert trade and financing activities will face the risk of U.S. sanctions. ” Earlier this month, Bentsen sent letters to financial institutions in China, Hong Kong, the UAE, and Oman, warning them that they would face severe secondary sanctions if they allowed Iran’s illegal economic activities to pass through their systems. Since February 2025, OFAC has imposed sanctions on more than 1,000 Iran-related individuals, vessels, and aircraft. Chinese response: Firm opposition; it is accused of disrupting the international trade order. Liu Pengyu, a spokesperson at the Chinese Embassy in Washington, previously said that the U.S.’ practice of imposing sanctions frequently undermines the order and rules of international trade, severely disrupts normal economic and trade activities, and violates the legitimate rights and interests of Chinese enterprises and individuals. However, some analysts point out that due to the close integration of China’s large enterprises and banks with the global financial system, they have often chosen to comply with U.S. sanctions measures as a form of risk avoidance. The timing of these sanctions has also drawn attention – the U.S. President *** is scheduled to visit China in a few weeks, and there is concern about the potential impact this may have on the bilateral meeting. Relevant impacts: Compliance experts analyze that being included on the SDN list has serious consequences; all assets of the relevant entities in the United States will be frozen as a result ； Americans, both individuals and companies, are prohibited from conducting any transactions with them ； Non-U.S. companies that do business with them may also face secondary sanctions risks ； Impacts such as disruptions in global supply chains, loss of reputation, and restricted market access may persist for a long time.