The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) has designated a so-called teapot oil refinery in Shasndong, China and its chief executive officer for purchasing and refining hundreds of millions of dollars’ worth of Iranian crude oil, including from vessels linked to the Houthis, and the Iranian Ministry of Defense of Armed Forces Logistics (MODAFL).
“Teapot refinery purchases of Iranian oil provide the primary economic lifeline for the Iranian regime, the world’s leading state sponsor of terror,” said secretary of the treasury Scott Bessent. “The United States is committed to cutting off the revenue streams that enable Tehran’s continued financing of terrorism and development of its nuclear program.”
OFAC is additionally imposing sanctions on 19 entities and vessels responsible for shipping millions of barrels of Iranian oil, comprising part of Iran’s fleet of tankers supplying teapot refineries like Luqing Petrochemical.
Yesterday’s action marks the fourth round of sanctions targeting Iranian oil sales since Donald Trump returned to power, ordering a campaign of maximum pressure on Iran.
Iran exports are estimated to have declined to 1.35m barrels per day on average during January and February, as compared to their 2024 average of 1.70m barrels per day. There are increasing reports of volumes lifting from Iran but facing extended storage time in Southeast Asia as the pool of buyers and ships available has tightened.
