China Tells Firms to Reject US Sanctions on Iran-Linked Oil Refiners

(MENAFN) China’s Commerce Ministry has instructed domestic companies not to comply with US sanctions targeting refineries allegedly tied to Iran’s oil trade, according to reports.

The directive follows a US Treasury warning to banks about engaging with privately owned Chinese “teapot” refineries, which Washington claims handle a significant share of Iranian oil exports. US officials argue that such trade supports Iran’s government and military programs.

Beijing has repeatedly denied direct imports of Iranian crude, and official customs data have not shown shipments from Iran since 2023. Chinese authorities maintain that sanctions imposed without United Nations approval violate international law.

In a statement, the Commerce Ministry said the US measures disrupt normal commercial activities between Chinese firms and other parties, and formally barred compliance with the restrictions, citing “national sovereignty, security and development interests.”

A government spokesperson added that the policy would not impact China’s broader international commitments or protections for foreign-invested companies. The ministry also signaled it would monitor what it described as improper extraterritorial enforcement of foreign laws and respond if necessary.

The move comes as global energy markets remain volatile following recent regional tensions, including disruptions affecting key shipping routes such as the Strait of Hormuz.

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