U.S. Sanctions Stir Oil Trade Tensions Before Crucial Iran Talks

The Trump administration has imposed new sanctions on Iranian oil trading networks, targeting a China-based crude oil terminal and entities involved in Iranian oil transport. These sanctions precede direct talks between the U.S. and Iran, reflecting ongoing tensions over Iran's oil exports and nuclear program.

The Trump administration ramped up its pressure on Iran by imposing hefty sanctions targeting Iranian oil trading networks, including a China-based crude oil terminal linked by a pipeline to an independent refinery. This move comes just days before anticipated talks between the U.S. and Iran are set to occur.

Among those sanctioned is Guangsha Zhoushan Energy Group Co Ltd, accused of engaging knowingly with Iranian oil. The State Department stated the terminal had acquired Iranian crude multiple times, underscoring China's role in processing Iranian oil, despite denials from the refinery involved.

China's oil imports from Iran have significantly increased, with buyers anticipating tighter U.S. restrictions. Meanwhile, the sanctions also target UAE-based entities linked with high-risk transfers of Iranian oil, as the U.S. aims to disrupt Iran's oil exports while geopolitical tensions simmer.

(With inputs from agencies.)