WASHINGTON, April 24 – The Treasury Department announced sanctions on Hengli Petrochemical (Dalian) and about 40 shipping companies and vessels that operate as part of Iran’s shadow fleet, aiming to restrict the flow of Iranian crude to global markets. The move follows a series of U.S. sanctions designed to choke Iran’s oil export network amid renewed peace talks. The sanctions block U.S. assets of the designated entities and prohibit American firms from doing business with them, tightening the financial web that supports Iranian oil sales. According to the Treasury’s Office of Foreign Assets Control, the 40 shipping companies and vessels are part of Iran’s shadow fleet. China buys more than 80% of Iran’s shipped oil, and teapots like Hengli account for a quarter of Chinese refinery capacity. The U.S. has also targeted other independent refineries, such as Hebei Xinhai Chemical Group, Shandong Shouguang Luqing Petrochemical, and Shandong Shengxing Chemical, creating hurdles for refiners that now face difficulties receiving crude and must sell refined products under different names. Treasury Secretary Scott Bessent said the Treasury would continue to constrict the network of vessels, intermediaries, and buyers Iran relies on to move its oil to global markets. He also told reporters that if they can prove Iranian money flowing through accounts, they are willing to impose secondary sanctions on the two Chinese banks that have been written to. While the sanctions may pressure Chinese banks and reduce the volume of Iranian oil entering the market, the impact on drilling and refining operations remains uncertain. Companies will need to monitor the evolving regulatory landscape and adjust supply chain strategies accordingly.