The United States on Wednesday issued new sanctions targeting Iran's oil exports, including against a China-based "teapot" oil refinery, as President Donald Trump's administration seeks to ramp up pressure on Tehran.
"Teapot" is an industry term for small independent oil refiners.
The U.S. Treasury Department said in a statement the action would increase pressure on Chinese importers of Iranian oil as Trump seeks to restore his "maximum pressure" campaign on Iran, which includes efforts to drive its oil exports down to zero.
The action comes as the Trump administration has relaunched negotiations with Iran over its nuclear programme this month, with talks in Oman last weekend and a second round expected in Rome this weekend.
The Treasury on Wednesday said it imposed sanctions on a China-based independent "teapot" refinery it accused of playing a role in purchasing more than $1 billion worth of Iranian crude oil. It was the second small independent Chinese refinery sanctioned by the Trump administration so far.
The United States has not in the past focused on Chinese teapot refiners in part because they have little exposure to the U.S. financial system. Chinese state-run oil firms have stopped buying Iranian crude, on concerns of running afoul of sanctions.
Washington also issued additional sanctions on several companies and vessels it said were responsible for facilitating Iranian oil shipments to China as part of Iran's "shadow fleet".
Iran's mission to the United Nations in New York and China's embassy in Washington did not immediately respond to requests for comment.
China does not recognize U.S. sanctions and is the largest importer of Iranian oil. China and Iran have built a trading system that uses mostly Chinese yuan and a network of middlemen, avoiding the dollar and exposure to U.S. regulators.
"Any refinery, company, or broker that chooses to purchase Iranian oil or facilitate Iran’s oil trade places itself at serious risk," Treasury Secretary Scott Bessent said in the statement.
"The United States is committed to disrupting all actors providing support to Iran’s oil supply chain, which the regime uses to support its terrorist proxies and partners."
GUIDANCE FOR SHIPPING
The Treasury on Wednesday also updated guidance for shipping and maritime stakeholders on "detecting and mitigating Iranian oil sanctions evasion," warning, among other things, that Iran depends on a vast shadow fleet to disguise oil shipments.
The Treasury said it was the sixth round of sanctions targeting Iranian oil sales since Trump restored his "maximum pressure" campaign on Iran, which includes efforts to drive its oil exports down to zero to help prevent Tehran from developing a nuclear weapon.
In his first 2017-2021 term, Trump withdrew the U.S. from a 2015 deal between Iran and world powers that placed strict limits on Tehran's uranium enrichment activities in exchange for sanctions relief. Trump also reimposed sweeping U.S. sanctions.
Since then, Iran has far surpassed that deal's limits on uranium enrichment.
Western powers accuse Iran of having a clandestine agenda to develop nuclear weapons capability by enriching uranium to a high level of fissile purity, above what they say is justifiable for a civilian atomic energy program. Tehran says its nuclear program is wholly for civilian power purposes.
"All sanctions will be fully enforced under the Trump Administration’s maximum pressure campaign on Iran," State Department spokesperson Tammy Bruce said in a separate statement on Wednesday.
"As long as Iran attempts to generate oil revenues to fund its destabilizing activities, the United States will hold both Iran and all its partners in sanctions evasion accountable."
