OFAC issues teapot refinery sanctions alert and Strait of Hormuz toll payment FAQ

OFAC issued a formal alert warning financial institutions of sanctions risks from dealing with Chinese teapot oil refineries that process Iranian crude. OFAC also published FAQ 1249, warning U.S. and non-U.S. persons that toll payments to Iran or the IRGC for Strait of Hormuz passage are not authorized and expose payers to U.S. sanctions. General License U, which had authorized Iranian crude already loaded on vessels as of March 20, 2026, had expired April 19 without renewal.