Story perspectives

US Treasury sanctions China's Hengli refinery for Iranian oil purchases

4/25/2026

Summary

Story summary

Treasury Department sanctioned Hengli Petrochemical (Dalian) Refinery Co., China’s second-largest oil refinery, for buying billions of dollars of Iranian petroleum.
The sanctions were announced days before U.S. President Donald Trump’s China visit and ahead of U.S.–Iran peace talks.
Treasury Secretary Scott Bessent said the agency will keep constricting the network moving Iranian oil, adding that Hengli processes up to 400,000 barrels and has generated hundreds of millions for Iran’s military since 2023.

History

Historical Context

After ZTE pleaded guilty to illegal U.S. technology exports in March 2017 and paid a $1.19 billion fine, the United States has repeatedly used Treasury sanctions to curb Chinese firms’ Iran trade. Building on that precedent, the Treasury in 2024, led by Secretary Scott Bessent, sanctioned Hengli Petrochemical’s Dalian refinery for moving billions of dollars of Iranian crude, reinforcing Washington’s strategy of financial pressure.

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Story summary

Treasury Department sanctioned Hengli Petrochemical (Dalian) Refinery Co., China’s second-largest oil refinery, for buying billions of dollars of Iranian petroleum.
The sanctions were announced days before U.S. President Donald Trump’s China visit and ahead of U.S.–Iran peace talks.
Treasury Secretary Scott Bessent said the agency will keep constricting the network moving Iranian oil, adding that Hengli processes up to 400,000 barrels and has generated hundreds of millions for Iran’s military since 2023.

1 / 2