The Treasury moved hard against Iran’s oil network by sanctioning a China-based refinery and roughly 40 vessels tied to the shadow fleet, aiming to cut off revenue that fuels Tehran’s ambitions and military activity.

The Treasury’s Office of Foreign Assets Control announced sanctions on China-based Hengli Petrochemical Refinery Co., Ltd., a so-called teapot refinery that has bought billions in Iranian oil and petroleum products. These independent refiners have been a steady route for Tehran to monetize its oil despite existing restrictions. The designation signals a stepped-up effort to make it costly for buyers and transporters to handle Iranian crude.

OFAC is also targeting roughly 40 shipping firms and vessels that operate as part of Iran’s shadow fleet, which moves oil and petrochemicals to market and keeps the regime funded. The goal of the sanctions is to choke Iran’s ability to generate revenue to fund attacking its neighbors and the U.S. That financial pressure is meant to disrupt the covert logistics that keep Tehran’s export machine running.

Secretary of the Treasury Scott Bessent said, “Economic Fury is imposing a financial stranglehold on the Iranian regime, hampering its aggression in the Middle East, and helping to curtail its nuclear ambitions,” and made clear the administration will go after the vessels, intermediaries, and buyers that move Iranian oil. He added that, at President Trump’s direction, Treasury will continue to constrict the network of vessels, intermediaries, and buyers Iran relies on to move its oil to global markets. “Any person or vessel facilitating these flows—through covert trade and finance—risks exposure to U.S. sanctions.”

The move is being implemented under Executive Order 13902 and in support of National Security Presidential Memorandum 2, which frames a broader campaign of maximum economic pressure on Iran’s money laundering and sanctions-evasion networks. Since February 2025, OFAC reports it has sanctioned more than 1,000 Iran-related persons, vessels, and aircraft as part of this effort. These layers of designations make it harder for shadow players to operate without entangling themselves in U.S. jurisdiction.

Since at least 2023, Hengli has received Iranian oil cargoes from a host of sanctioned shadow fleet vessels, including BIG MAG (IMO 9263215), GALE (IMO 9294240), and ARES (IMO 9174397), which collectively have delivered over five million barrels of Iranian crude. That trade has funneled sizable sums back to Tehran and its affiliated entities. By naming the refinery, Treasury is signaling buyers that the tolerance for this trade is ending.

Hengli has also purchased crude overseen by Iran’s Armed Forces General Staff oil sales arm, Sepehr Energy Jahan Nama Pars Company, generating hundreds of millions of dollars in revenue for the Iranian military. Those transactions tied commercial buyers directly to military-controlled oil sales, raising national security concerns. Designating entities on that chain aims to freeze those flows and expose middlemen who thought they were beyond reach.

The Iranian shadow fleet is the logistical bridge between producers and buyers in Asia, and it has relied on ship-to-ship transfers, flag-hopping, and opaque ownership to obscure the origin of cargoes. Treasury’s latest action adds a set of vessels to the Specially Designated Nationals and Blocked Persons List to reduce the fleet’s ability to move product. With fewer safe ports and partners, Iran will face tougher choices about how to move its oil.

OFAC is designating 19 shadow fleet vessels for transporting billions in Iranian crude oil, liquified petroleum gas, and other products. These vessels have carried millions of barrels to ports across the United Arab Emirates, Bangladesh, China, and other destinations, often through covert transfers or misleading flag registrations.

• The Panama-flagged oil tanker LISBOA (IMO 9257711) transported eight cargoes of Iranian naphtha, totaling over 2.5 million barrels, to the United Arab Emirates between July 2025 and January 2026.
• The Panama-flagged LPG SEVAN (IMO 9177806) transported multiple cargoes of Iranian propane and butane, approximately 750,000 barrels, to Bangladesh between August and November 2025.
• The Hong Kong-flagged oil tanker LYNN (IMO 9352559) engaged in ship-to-ship transfers of Iranian crude off the coast of Malaysia in May 2025, ultimately delivering the cargo to China.
• The Panama-flagged oil tanker GLOBAL VIVIAN (IMO 9002908) transported some 1.6 million barrels of Iranian propane and butane between April and October 2025, ultimately delivered to the UAE.
• The Hong Kong-flagged oil tanker MAGNOLIA (IMO 9258519) transported approximately two million barrels of Iranian crude oil to China in January 2026.
• The Vanuatu-flagged oil tanker SEEKER 8 (IMO 9294329) transported over four million barrels of Iranian crude oil between January and February 2026, discharging the cargo in China.
• The unknown-flagged oil tanker STELLAR BEVERLY (IMO 9208069) transported over two million barrels of Iranian crude between August and October 2025, delivering the cargo to China.
• The Panama-flagged oil tanker COVENIO (IMO 9263227) has transported more than six million barrels of Iranian oil to China since early 2025.
• The Comoros-flagged oil tanker GOLDEN SUNRISE (IMO 9183362) has transported several million barrels of Iranian oil to China since mid-2025.
• The Barbados-flagged oil tanker ZHEN ZHU (IMO 9290359) has transported more than four million barrels of Iranian oil to China since late 2025.
• The Barbados-flagged oil tanker BANGUS (IMO 9308998) has transported more than a million barrels of Iranian oil to China since mid-2025.
• The Comoros-flagged oil tanker MIRAAN (IMO 9242481) has transported hundreds of thousands of barrels of Iranian high sulfur fuel oil as recently as early 2026.
• The Antigua and Barbuda-flagged oil tanker LIN 9 (IMO 9240158) has transported hundreds of thousands of barrels of Iranian ethylene since late 2023 through early 2026.
• The Panama-flagged oil tanker GALVIN (IMO 9387762) has transported approximately two million barrels of Iranian LPG since early 2025.
• The Panama-flagged oil tanker HH GLORY (IMO 9534614) has transported hundreds of thousands of barrels of Iranian LPG since 2025.
• The Panama-flagged oil tanker ANSHUN II (IMO 9253117) has transported millions of barrels of Iranian oil since 2024.
• The Panama-flagged SMD WORLD (IMO 9290086) has transported millions of barrels of Iranian oil since mid-2025.
• The Marshall Islands-flagged oil tanker EDOR (IMO 9259317) has transported millions of barrels of Iranian HSFO since late 2025.
• The Cook Islands-flagged oil tanker BENTLEY (IMO 9220914) has transported millions of barrels of Iranian HSFO since late 2025.

The action also designates a list of companies for operating in Iran’s petroleum and petrochemical sectors, naming owners and managers tied to the vessels above. Lisboa Shipping Company Limited, Anka Energy and Logistics Company, Ting Tao Company Limited, Thien An Hoa Binh Company Limited, Nice Gift Limited, Reayou Company Limited, Yegua Trading Limited, Extensive Shipping Limited, Xifoides Group Limited, Zhoushan Yaohai Shipping Co., Ltd, Costin Shipping Limited, Mihir Shipping Inc., Patriot Inc., Naxos Maritime and Trading S.A., Laurel Shipping Ltd, Lepus Navigation Ltd, Dofa Shipping Ltd, Skyros Maritime and Trading S.A., and Evy Blue Ltd are among those designated.

All property and interests in property of the named persons that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. Violations of U.S. sanctions can lead to civil or criminal penalties, and OFAC may impose civil penalties on a strict liability basis, consistent with its Economic Sanctions Enforcement Guidelines.