US Treasury sanctions Iranian oil refinery

Shafaq News/ On Thursday, the US Department of the Treasury announced, new sanctions related to Iran's oil and petrochemical sectors.

The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced in a statement that it is designating a “teapot” oil refinery and its chief executive officer for purchasing and refining hundreds of millions of dollars worth of Iranian crude oil. OFAC accused the refinery of supplying oil to vessels linked to Ansarallah (Houthis) and the Iranian Ministry of Defense and Armed Forces Logistics (MODAFL).

Secretary of the Treasury Scott Bessent said, “The United States is committed to cutting off the revenue streams that enable Tehran’s continued financing of terrorism and development of its nuclear program.”

In addition, OFAC imposed sanctions on 19 entities and vessels responsible for shipping millions of barrels of Iranian oil. These entities are part of Iran’s “shadow fleet” of tankers that supply teapot refineries like Luqing Petrochemical, the statement added.

This marks the fourth round of sanctions aimed at Iranian oil sales, following the issuance of National Security Presidential Memorandum 2 by the President on February 4, 2025.

The US Department of State designated another entity under US sanctions for being involved in significant transactions related to the purchase, sale, or transport of petroleum products from Iran.

Last week, OFAC imposed sanctions on the Iranian oil minister, commercial vessels, and entities.