U.S. Sanctions Target China's 'Teapot' Refineries in Iran Oil Crackdown

The U.S. imposed new sanctions targeting Chinese independent refineries processing Iranian oil, as part of efforts to curb Iran's oil exports. Despite opposition from China, the strategy aims to pressure Iran on its nuclear ambitions. The sanctions affect 12 entities and target vessels shipping Iranian oil to China.

The United States on Thursday announced a fresh wave of Iran-related sanctions, this time aimed at entities including Chinese independent refineries, commonly known as 'teapots'. These refineries are accused of processing Iranian crude oil, continuing Washington's 'maximum pressure' campaign aimed at curbing Tehran's oil exports.

This move marks a significant step in Washington's fourth round of sanctions since February, when President Donald Trump declared efforts to reduce Iran's oil exports to zero, with the broader aim of preventing Tehran from acquiring nuclear arms and funding militant groups.

China, the largest importer of Iranian oil, condemned the sanctions and continues to transact using the yuan to avoid U.S. dollar regulations. Analysts suggest the U.S. strategy applies moderate pressure on China, avoiding harsh measures that could provoke Beijing economically, while gradually increasing efforts to push Iran toward a nuclear deal.

(With inputs from agencies.)