US Slaps Iran-related Sanctions on Oil Tankers, China ‘Teapot' Refinery

The Liberian-flagged tanker Ice Energy, chartered by the US government, takes Iranian oil from Iranian-flagged Lana (formerly Pegas) as part of a civil forfeiture action off the shore of Karystos, on the Island of Evia, Greece, May 26, 2022. REUTERS/Costas Baltas/File Photo
The Liberian-flagged tanker Ice Energy, chartered by the US government, takes Iranian oil from Iranian-flagged Lana (formerly Pegas) as part of a civil forfeiture action off the shore of Karystos, on the Island of Evia, Greece, May 26, 2022. REUTERS/Costas Baltas/File Photo
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US Slaps Iran-related Sanctions on Oil Tankers, China ‘Teapot' Refinery

The Liberian-flagged tanker Ice Energy, chartered by the US government, takes Iranian oil from Iranian-flagged Lana (formerly Pegas) as part of a civil forfeiture action off the shore of Karystos, on the Island of Evia, Greece, May 26, 2022. REUTERS/Costas Baltas/File Photo
The Liberian-flagged tanker Ice Energy, chartered by the US government, takes Iranian oil from Iranian-flagged Lana (formerly Pegas) as part of a civil forfeiture action off the shore of Karystos, on the Island of Evia, Greece, May 26, 2022. REUTERS/Costas Baltas/File Photo

The US on Thursday issued new Iran-related sanctions, targeting entities including for the first time a Chinese "teapot", or independent refinery, and vessels that supplied crude oil to such processing plants.
It was Washington's fourth round of sanctions on Iran's oil sales since President Donald Trump said in February he was re-imposing a "maximum pressure" campaign including efforts to drive down the country's exports to zero. Trump aims to stop Tehran from obtaining a nuclear weapon and funding militant groups.

The refinery Treasury targeted for sanctions is China-based Shandong Shouguang Luqing Petrochemical Co., Ltd.
"So-called 'teapot' refinery purchases of Iranian oil provide the primary economic lifeline for the Iranian regime, the world’s leading state sponsor of terror and the primary backer of the murderous Houthis in Yemen," US Treasury Secretary Scott Bessent said in a post on X.

State Department spokesperson Tammy Bruce said the refinery bought oil from vessels linked to Yemen's Iran-aligned Houthis, which the US designated this month as a Foreign Terrorist Organization, and the US-designated Iranian Ministry of Defense of Armed Forces Logistics.

Treasury also imposed sanctions on 12 entities, and identified eight vessels as blocked property it said were responsible for shipping millions of barrels of Iranian oil to China. These vessels are part of Iran’s “shadow fleet” of tankers that supply the private refineries.
It also placed Wang Xueqing, who it said is linked to the refinery, on the specially designated nationals, or SDN, list. Americans are prohibited from doing business with people placed on that list, and their US assets are blocked.
The vessels Treasury blocked included Panama-flagged Aurora Riley and the Catalina, and the Barbados-flagged Brava Lake.
The State Department said it was imposing sanctions on an oil terminal in China called Huaying Huizhou Daya Bay Petrochemical Terminal Storage, for buying and storing Iranian crude oil from a sanctioned vessel.



Concern in Israel Over US-Iranian Talks in Rome

Trump and Netanyahu at the White House on January 27, 2020 (dpa)
Trump and Netanyahu at the White House on January 27, 2020 (dpa)
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Concern in Israel Over US-Iranian Talks in Rome

Trump and Netanyahu at the White House on January 27, 2020 (dpa)
Trump and Netanyahu at the White House on January 27, 2020 (dpa)

Israel has expressed concern that the Trump administration would relieve sanctions against Tehran as the second round of Iran-US talks wrap up in Rome with an agreement to establish a framework for a potential nuclear deal.

Oman, which is mediating the nuclear negotiations between both countries, said the discussions “aim to reach a fair, lasting, and binding agreement that will guarantee an Iran without nuclear weapons and without sanctions, while preserving its ability to develop peaceful nuclear energy”.

Hours after the end of the second round of US-Iran talks, Israeli Prime Minister Benjamin Netanyahu said he remains firmly committed to preventing Tehran from obtaining a nuclear weapon.

Israel’s Hayom daily newspaper quoted a source close to the White House as saying that US-Iran talks are expected to collapse soon.

It said an Israeli non-governmental source recently spoke with a senior US official who said Israel need not fear the progress being made in talks between US envoy Steve Witkoff and Iranian representatives over Iran's nuclear program.

The source said “a breakdown in the Iran-US talks is expected in a few weeks when the Americans present their full list of demands”.

The Israeli source also quoted the US official as saying that, “Trump is not confused. He is conducting the negotiations in his own way and knows exactly what he is doing”.

“We need to let Trump manage the situation as he sees fit. He has a unique method, but he knows what he's doing,” the US official added.

Israel insists that any negotiation with Iran must lead to the complete dismantling of its nuclear program.

Meanwhile, Reuters said Israel has not ruled out an attack on Iran's nuclear facilities in the coming months despite Trump telling Netanyahu that Washington was for now unwilling to support such a move, according to an Israeli official and two other people familiar with the matter.

Over the past months, Israel has proposed to the Trump administration a series of options to attack Iran’s facilities, including some with late spring and summer timelines, the sources said. The plans include a mix of airstrikes and commando operations that vary in severity and could set back Tehran's ability to weaponize its nuclear program by just months or a year or more, the sources said.

The New York Times reported on Wednesday that Trump told Netanyahu in a White House meeting earlier this month that Washington wanted to prioritize diplomatic talks with Tehran and that he was unwilling to support a strike on the country’s nuclear facilities in the short term.

Israeli Foreign Minister Gideon Sa'ar denied on Saturday, in statements to the British Daily Telegraph, reports regarding Trump’s obstruction of an Israeli strike against Iranian nuclear facilities.

“I am a member of the security cabinet, and all the intimate forums, and I don’t remember such a decision,” Sa’ar said. “I don’t think that such a decision was taken. But Israel is committed to the objective of preventing Iran from having nuclear weapons. If that objective can be achieved by a diplomatic path, it is accepted.”

Asked whether he fears that Steve Witkoff, Trump’s negotiator, may be angling for a soft, Obama-style deal with Iran, Sa’ar pointed to a more hawkish recent post by Witkoff on X. “Steve Witkoff tweeted emphasizing that he is looking for the dismantling of the Iranian nuclear project, both enrichment and weaponization,” he said.

Sa’ar added that the current administration is committed to dealing with this issue. “It has put it very high on its agenda. The most important thing is the objective. Iran cannot have a nuclear weapon.”

The Israeli minister added, “We saw [how Iran] helped Russia during the war on Ukraine, with weapons, drones and intelligence,” warning of “the great danger” of allowing “the most extremist regime in the world to have the most dangerous weapon in the world. Iran’s missiles have the ability to reach Europe today.”

He then warned about a contagion of possessing nuclear weapons in the region. “If Iran will have nuclear weapons, then we will have a nuclear race in the Middle East.. and this will have hard consequences on security, not only in the Middle East.”

Meanwhile, Israel's Channel 14 said a deal between the US and Iran would be better for the Iranians than the one signed under the Obama administration.

“Sanctions are expected to be lifted, billions of dollars injected, while Iran’s arms of terrorism, including Hamas and Houthis, would start operating again. Tehran’s proxies are still active in Iraq, Yemen, and even Africa, suggesting that threat is re-emerging,” the channel said.