China challenges US sanctions on five refiners over Iran oil

Shafaq News- Beijing

China on Saturday issued an injunction blocking US sanctions on five Chinese refiners accused of buying Iranian oil, state news agency Xinhua reported, barring recognition, implementation, or compliance with the measures.

The companies named include Hengli Petrochemical (Dalian) and four independent “teapot” refiners: Shandong Jincheng Petrochemical Group, Hebei Xinhai Chemical Group, Shouguang Luqing Petrochemical, and Shandong Shengxing Chemical. China’s Ministry of Commerce said the sanctions improperly restrict Chinese firms’ trade with third countries and violate international law and global trade norms.

The sanctions had already disrupted operations, complicating crude imports and forcing refiners to sell products under alternative names. Teapot refiners account for about a quarter of China’s refining capacity but operate on thin, sometimes negative margins amid weak domestic demand.

Washington imposed the sanctions on Friday as part of a broader package targeting Iran’s oil sector, in what Treasury Secretary Scott Bessent described as “Operation Economic Fury.” Hengli Petrochemical, however, denied any transactions involving Iranian oil, saying all crude suppliers had confirmed shipments did not fall under US sanctions.