US sanctions companies involved in Iran's oil exports to China

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MG News | May 14, 2025 at 02:58 PM GMT+05:00

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May 14, 2025 (MLN): The US Treasury Department has imposed sanctions on a network of nearly two dozen companies and shipping agents accused of assisting Iran in transporting billions of dollars' worth of oil to China.

These companies, based in Hong Kong and mainland China, are alleged to have played a critical role in disguising Iranian crude oil as coming from other sources and funneling it to China.

The network is said to have facilitated shipments for Iran's Armed Forces General Staff, the country’s top military body, and its front company, Sepehr Energy.

The US Treasury’s Office of Foreign Assets Control stated that the network's activities were aimed at circumventing sanctions and helping Iran maintain its oil trade.

This oil trade funds Iran's destabilizing activities, including the development of ballistic missiles and drones, nuclear proliferation, and attacks by the Houthi militia on various targets, including shipping in the Red Sea.

Treasury Secretary Scott Bessent emphasized that the latest action demonstrates the US's continued efforts to intensify pressure on every aspect of Iran's oil trade.

“The United States will keep targeting this primary source of revenue for as long as the regime continues its support for terrorism and proliferation of deadly weapons,” Bessent said.

The sanctions freeze all US-linked assets of the designated individuals and entities.

Companies that are at least half-owned by those sanctioned will also be barred from engaging in transactions involving US businesses or the US financial system.

Among the firms sanctioned were several Hong Kong-registered companies, including Xin Rui Ji Trad Co, Star Energy International Ltd, and Milen Trading Co Ltd, which were controlled by Sepehr Energy and used to broker and receive shipments of Iranian oil.

In addition, the Treasury Department identified mainland Chinese companies and their overseas branches that helped facilitate the oil deliveries, as SCMP reported.

One such company, CCIC Singapore PTE, provided inspection services during ship-to-ship transfers and allegedly falsified documents certifying Iranian oil as originating from other countries.

Shipping agencies that assisted with vessel operations in Chinese ports, such as Qingdao Linkrich International Shipping Agency Co, were also targeted by the sanctions.

Several Hong Kong-based companies, including Metaone Trading Ltd, South Sea Energy Ltd, Continental Sinoil Group Ltd, and Winso Trading Ltd, were identified as intermediaries for Sepehr Energy.

Additionally, the Singapore-based Oriental Apple Company PTE Ltd was also named as an intermediary, while Shandong's "teapot refineries" in China reportedly purchased discounted crude from sanctioned countries, including Iran.

The US has already imposed sanctions on at least three Chinese "teapot refineries" this year, before extending sanctions to the entire network on Tuesday.

In response, Chinese embassy spokesman Liu Pengyu condemned the US's actions, accusing it of “abusing illegal unilateral sanctions and long-arm jurisdiction” and vowed that China would take all necessary measures to protect the rights of Chinese companies.

The US sanctions announcement comes amid broader geopolitical developments.

In a separate move, US President Donald Trump secured a $600 billion investment commitment from Saudi Arabia, Iran’s regional rival, shortly before the sanctions were announced.

The investment deal with Riyadh spans several sectors, including energy, artificial intelligence, and defense.

Meanwhile, Beijing brokered a historic peace deal between Iran and Saudi Arabia in 2023.

Earlier this week, the US and Iran concluded a fourth round of negotiations over Iran’s nuclear program, but there was no significant progress.

In Riyadh, President Trump indicated that while he sought to make a deal, if Tehran “rejects this olive branch,” the US would have “no choice but to inflict massive maximum pressure” and drive Iranian oil exports to zero.

Copyright Mettis Link News

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