US Sanctions China-Based Oil Terminal, Ship Managers Amid Iran Sanctions Regime

The move is directed at a Chinese terminal operator responsible for importing tens of millions of barrels of Iranian crude.
Published: 5/1/2026, 11:28:52 PM EDT

The United States on Friday sanctioned a network of entities and individuals alleged to have funneled billions of dollars to Iran via illicit oil sales, taking aim at a China-based terminal operator responsible for importing tens of millions of barrels of sanctioned crude.

According to the State Department, the move as part of ongoing actions under the Trump administration’s Economic Fury policy to derail Tehran’s main revenue source for financing military action and terrorist activities. The move represents the 12th round of sanctions on Iranian oil sales since National Security Presidential Memorandum-2 was issued on Feb. 4, 2025.

“The United States is taking decisive action to disrupt Iran’s illicit oil trade, the Iranian regime’s primary revenue streams that fund terrorism and regional destabilization,” the department said in a fact sheet.

Officials sanctioned Qingdao Haiye Oil Terminal Co., Ltd., a China-based operator in the Qingdao Huangdao port area of Shandong province, as well as its president, Xinchun Li, a Chinese national.

The terminal took dozens of shipments amounting to tens of millions of barrels of Iranian-origin crude in 2025, often from vessels executing illicit ship-to-ship transfers off Singapore’s eastern outer port limits, which is known for such evasion.

Those transfers included vessels that had been previously sanctioned by the Treasury’s Office of Foreign Assets Control for handling Iranian energy products. The efforts rely on “sophisticated evasion schemes, including illicit ship-to-ship transfers and ‘dark fleet’ operations that employ deceptive shipping practices endangering legitimate maritime commerce,” according to the State Department.

“So long as Iran attempts to generate oil revenues to fund its destabilizing activities, the United States will hold both Iran and all its sanctions-evading partners accountable,” the department stated.

The designations indicate property and interests in property of the sanctioned persons in the United States or in the possession of U.S. persons are blocked. Transactions between them and U.S. persons are also prohibited.

This latest move is in line with a larger U.S. campaign to undermine Iran’s shadow financial networks and oil trade facilitators. The Treasury has targeted dozens of individuals and entities in Iran’s shadow banking system, Chinese refineries buying Iranian oil, and vessel networks, equating to hundreds of millions to billions of dollars for Iran’s military and terrorist proxies. The funds are often routed through opaque Chinese entities and “dark fleet” tankers that disable tracking signals.
Meanwhile, Iran’s currency has hit record lows amid increased pressure amid the blockade and sanctions regime.
The United States has warned banks and firms worldwide that support Iranian oil flows will also be sanctioned and has already targeted networks selling Iranian oil to China and financing Tehran’s armed forces.