US sanctions target Chinese refiner over alleged Iran oil trade, shares plunge

Shares of China’s Hengli Petrochemical dropped sharply by around 10% after the United States imposed sanctions on the company, accusing it of purchasing crude oil from Iran in violation of existing restrictions.

Hengli Petrochemical, one of China’s крупнейший independent refiners, rejected the allegations, stating that it has not engaged in any transactions involving Iranian crude. The company added that its suppliers had assured compliance, confirming that the origin of supplied crude does not fall under US sanctions.

The refiner also said it currently holds sufficient crude inventory to cover approximately three months of operations and that its supply chain remains unaffected. It further argued that the sanctions lack both factual and legal grounds and indicated it would take steps to challenge the decision.

The US Treasury Department identified Hengli as a major buyer of Iranian crude, effectively restricting its access to the US financial system and prohibiting American firms from conducting business with it.

Market analysts note that independent Chinese refiners are generally less exposed to the full impact of US sanctions compared to state-owned companies, largely due to their limited reliance on the US banking system.

Data indicates that China accounted for a significant majority of Iran’s crude exports last year, with most volumes directed toward independent refiners. Demand has remained strong this year as well, with these refiners actively securing Iranian cargoes after receiving fresh import quotas from Beijing. Buyers have even been willing to pay premiums for Iranian oil, especially as supply routes remain constrained and tanker movements through the Strait of Hormuz continue to face restrictions.

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