US sanctions over 20 companies for facilitating Iranian oil shipments to China

The US Treasury Department on Tuesday imposed sweeping sanctions on more than 20 companies accused of operating within a vast international network that facilitates the shipment of Iranian crude oil worth billions of dollars to China.

The move is part of the Trump administration’s ongoing “maximum pressure” campaign aimed at curbing Iran’s oil revenues and deterring its military and nuclear ambitions.

The sanctioned network is allegedly tied to Iran’s Armed Forces General Staff (AFGS) and its front company, Sepehr Energy Jahan Nama Pars Company, which the US says uses complex smuggling tactics involving front companies, fake documentation, and shadow fleet tankers to evade sanctions and funnel money into Iran’s defence and missile programs, as well as support for terrorist groups across the region.

Oil revenue linked to weapons development

According to the Treasury’s Office of Foreign Assets Control (OFAC), the sanctioned entities operate in multiple jurisdictions, including Hong Kong, Singapore, China, and the Seychelles. The network includes companies such as CCIC Singapore PTE Ltd, Huangdao Inspection and Certification Co. Ltd, and Qingdao Linkrich International Shipping Agency Co. Ltd, all of which played roles in masking the Iranian origin of crude shipments and facilitating their delivery to China’s independent “teapot” refineries.

OFAC said revenue from these sales directly funds Iran’s development of ballistic missiles, unmanned aerial vehicles (UAVs), and nuclear proliferation activities, as well as attacks by the Houthi group on commercial vessels in the Red Sea and against US and Israeli interests.

Reuters reported that Treasury Secretary Scott Bessent said, “This action underscores our continued focus on intensifying pressure on every aspect of Iran’s oil trade”.

“We will continue targeting this primary source of revenue so long as the regime supports terrorism and proliferation of deadly weapons,” he added.

US warns of further measures amid fragile diplomacy

The sanctions come just days after the conclusion of a fourth round of nuclear talks between Tehran and Washington. While both countries have expressed a preference for a diplomatic resolution to the decades-long nuclear standoff, deep disagreements remain over key issues such as uranium enrichment levels.

US President Donald Trump, speaking at a US-Saudi investment conference, offered Iran “a new and better path” but warned that rejection would be met with even harsher measures, including driving Iranian oil exports “to zero”.

This latest round of sanctions also targets ships, shadow fleet tankers like BALU and ROC, and financial facilitators involved in laundering proceeds back to the AFGS. US officials have signalled that unless China’s state-owned enterprises are brought into the sanctions regime, the measures may have limited long-term impact.

Meanwhile, Beijing has criticised the US for what it calls “long-arm jurisdiction” that undermines international trade, reaffirming its opposition to unilateral sanctions.