Story perspectives

US Sanctions Chinese Refinery Over Alleged Iranian Oil

4/28/2026

Summary

Story summary

The U.S. Treasury added Hengli Petrochemical’s Dalian refinery to its sanctions list, accusing it of buying Iranian oil.
Hengli denied any Iranian trade, said suppliers guarantee non-sanctioned crude, said operations remain normal, and will settle future purchases in yuan.
Shares dropped about 10% on Monday following the sanctions.
China’s foreign ministry called the sanctions illegal unilateral measures and pledged to protect Chinese firms’ rights.

History

Historical Context

In August 2018 the Treasury barred ZTE after it pleaded guilty to illegal Iran shipments, forcing a $1 billion fine and a temporary export ban. That action built on earlier sanctions such as the 2014 Sinotech case and foreshadowed later sanctions, such as the 2026 targeting of Hengli Petrochemical’s Dalian refinery for processing Iranian crude, illustrating Washington’s ongoing strategy of targeting Chinese supply-chain nodes linked to Iran.

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Story summary

The U.S. Treasury added Hengli Petrochemical’s Dalian refinery to its sanctions list, accusing it of buying Iranian oil.
Hengli denied any Iranian trade, said suppliers guarantee non-sanctioned crude, said operations remain normal, and will settle future purchases in yuan.
Shares dropped about 10% on Monday following the sanctions.
China’s foreign ministry called the sanctions illegal unilateral measures and pledged to protect Chinese firms’ rights.

1 / 2