Treasury sanctions 40 Iran shadow fleet vessels and China's Hengli refinery

The Treasury Department''s Office of Foreign Assets Control designates 40 vessels involved in Iran''s shadow oil export network and sanctions China''s Hengli Petrochemical Group and its associated refinery in Dalian — one of Iran''s largest single customers for sanctioned oil. The action is part of the Trump administration''s campaign to cut off Iranian oil revenue during the ongoing U.S.-Israel-Iran conflict. The 40-vessel network is accused of using ship-to-ship transfers, falsified documentation, and flag-switching to obscure the origin of Iranian crude and deliver it to buyers, primarily in China. The Hengli refinery in Dalian is estimated to have processed hundreds of millions of dollars'' worth of Iranian oil, providing a major source of revenue for Iran''s government and Revolutionary Guard Corps. Treasury Secretary Scott Bessent says the sanctions are part of a "maximum pressure" strategy to economically isolate Iran during the conflict. China''s government does not recognize U.S. secondary sanctions and has not indicated it will comply with the designations. The action raises the risk of diplomatic friction with Beijing at a time of ongoing trade tensions. It is among the largest single shadow fleet designations the U.S. has announced.