Trump Hits Chinese Refinery Over Iranian Oil Ahead of China Visit

President Trump’s latest move hits a major Chinese oil plant, the Hengli Petrochemical refinery in Dalian, for dealing with Iranian crude. The decision follows his earlier warning that he would add secondary sanctions to companies and nations trading with Iran, aiming to weaken the Iranian economy. The U. S. Treasury says Hengli has taken Iranian oil since 2023 and earned hundreds of millions in revenue for the Iranian military. This crackdown comes just weeks before Trump is scheduled to meet Chinese President Xi Jinping in Beijing, adding political tension to the trade dispute. China is a top buyer of Iranian oil, taking 80‑90 % of shipments before the recent U. S. –Israeli conflict. Many of these imports travel in disguise, often appearing as oil from Malaysia or other countries, and are processed by smaller “teapot” refineries.Treasury Secretary Scott Bessent warned that the U. S. will keep tightening restrictions on vessels, middlemen and buyers moving Iranian oil worldwide. Earlier this month he threatened secondary sanctions against banks in China, Hong Kong, the UAE and Oman that facilitate Iranian trade. The new sanctions come amid a global energy crisis: conflict in the Persian Gulf has cut off oil and gas flows, pushing prices higher. The Treasury has offered temporary waivers on Russian oil and a one‑time waiver for Iranian oil already at sea to ease the price surge. China has protested U. S. sanctions, arguing they disrupt international trade and harm legitimate Chinese businesses. Nevertheless, many Chinese firms still comply with U. S. rules because they rely heavily on the American financial system. The sanctions add pressure on Iran, which has demanded that sanctions be lifted as part of any peace talks. Whether the move will change Iran’s strategy or affect U. S. –China relations before the upcoming summit remains to be seen.