China Blocks US Sanctions on Five Iranian‑Oil Buying Refineries

The US Treasury sanctioned the refiners last month, barring them from the US financial system and targeting anyone who does business with them. China’s Ministry of Commerce said the sanctions improperly restrict trade and violate international law. The ministry issued a prohibition order stating the sanctions shall not be recognized, enforced, or complied with.

China announced the injunction blocking US sanctions on five refiners: Hengli Petrochemical (Dalian) Refinery, Shandong Jincheng Petrochemical Group, Hebei Xinhai Chemical Group, Shouguang Luqing Petrochemical and Shandong Shengxing Chemical. Kpler data shows China purchased over 80% of Iran’s oil exports in 2025. The ministry said the sanctions lack UN authorization and breach basic norms of international relations.

The injunction signals China’s willingness to shield its “teapot” refineries from US pressure, preserving access to discounted Iranian crude. It raises the risk of further tit‑for‑tate measures between Washington and Beijing over energy trade. Watch for any US response, potential WTO complaints, or shifts in global oil flow patterns.