US Sanctions Iranian Exchanges, China Terminal on Oil Purchases
(Bloomberg) — The Trump administration imposed sanctions on three Iranian currency exchanges and a Chinese oil terminal on Friday as the United States increased pressure on Tehran to end the war and reopen the Strait of Hormuz.
The Treasury Department announced Friday that it has blacklisted firms that help launder billions of dollars in foreign money, including by converting oil sales denominated in Chinese yuan into other legal tender. In a separate statement, the Treasury announced sanctions against China-based Qingdao Haiye Oil Terminal Company. China is the largest buyer of Iranian oil.
“We will ruthlessly target the regime’s ability to generate, move and repatriate funds and pursue anyone who enables Tehran’s attempts to evade sanctions,” Treasury Secretary Scott Bessent said in a statement.
The United States is increasing economic pressure on Iran by imposing a naval blockade on the Strait of Hormuz, through which approximately one-fifth of the world’s oil and liquefied natural gas flowed before the war. President Donald Trump is pushing Iran to capitulate to US demands as closing the strait would sharply increase global energy prices.
As part of a U.S. effort to pressure Iran to reach a deal, the Treasury has issued regular sanctions, some targeting Chinese entities.
The US also imposed sanctions on China-based oil terminal operator Qingdao Haiye for allegedly trading Iranian oil. The Chinese firm is accused of using deceptive shipping practices to import tens of millions of barrels of sanctioned Iranian crude oil, the Treasury Department said in a statement.
Targeting China shows how Washington’s escalating pressure campaign is spreading beyond Iran to those who buy its oil. The US naval blockade has restricted Tehran’s ability to export crude oil, depriving the major OPEC producer of a key source of revenue. As a result, the country’s storage capacity is rapidly running out, increasing the risk of accelerating production disruptions, according to Kpler.
The US Treasury on Tuesday warned banks that they risked secondary sanctions if they supported independent Chinese refiners buying Iranian oil, and last week it announced sanctions against one of China’s largest private refineries over its ties to Tehran.
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