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The US Treasury Department has imposed sanctions on more than 20 companies it says are involved in shipping Iranian crude oil worth billions of dollars to China, as part of the Trump administrationâs âmaximum pressureâ campaign on Tehran.
The Treasuryâs Office of Foreign Assets Control announced that it was placing sanctions on nearly two dozen groups involved in Iranâs âillicit international oil tradeâ. Treasury Secretary Scott Bessent emphasized the focus on intensifying pressure on every aspect of Iranâs oil trade, which the regime uses to fund its activities.
The targeted entities include several Hong Kong-based companies that the US alleges are front companies for Sepehr Energy, a commercial affiliate of Iranâs Armed Forces General Staff. These companies, such as Xin Rui Ji, Star Energy, and Milen Trading, are accused of brokering and receiving shipments of Iranian oil delivered to Chinese teapot refineries.
The Treasury stated that the proceeds from these oil sales were remitted back to the AFGS, funding the development of ballistic missiles, unmanned aerial vehicles, and financing regional terrorist groups. Additionally, CCIC Singapore was sanctioned for obfuscating the Iranian origin of the oil through ship-to-ship transfers and document falsification.
The US also targeted a fleet of aging âshadow fleetâ oil tankers used by Sepehr Energy to facilitate Iranian oil shipments to China. These sanctions are part of a broader crackdown on Chinese entities involved in purchasing Iranian crude oil, aiming to pressure Iran as negotiations continue over its nuclear program.
President Trump recently expressed a desire to avoid conflict with Iran but warned of imposing massive pressure and driving Iranian oil exports to zero if Tehran rejects the olive branch. The Treasuryâs actions come after criticism that the Biden administration did not take strong enough action against Iranian oil exports.
Beijing has condemned the US sanctions, accusing Washington of undermining international trade with its âlong-arm jurisdictionâ tactics. Despite the ongoing tensions, the US continues to ramp up pressure on Iranâs oil trade as part of its strategy to address Tehranâs support for terrorism and proliferation of weapons.
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