China Directs Firms to Resist U.S. Sanctions on Iranian Oil-Linked Refineries

(MENAFN) China has reportedly told domestic companies not to comply with U.S. sanctions targeting privately owned oil refineries believed to be involved in purchasing Iranian crude, according to reports.

The guidance comes after the U.S. Treasury warned financial institutions against doing business with so-called “teapot” refineries, which Washington says are responsible for a large share of China’s Iranian oil imports. U.S. officials argued that revenues from such trade ultimately support Iran’s government and its military capabilities.

Chinese authorities and major state-owned energy firms have repeatedly denied directly importing Iranian crude, and official customs data has not shown recorded imports from Iran since 2023.

Beijing, however, has maintained that unilateral sanctions imposed without United Nations approval are inconsistent with international law. According to a statement from China’s Ministry of Commerce, foreign restrictions that interfere with normal commercial activity are not to be followed by domestic firms, citing national sovereignty, security, and development priorities.

The ministry added that it will continue monitoring what it describes as the extraterritorial application of foreign laws and may take further legal or regulatory steps if necessary.

Meanwhile, global oil markets have experienced volatility amid ongoing tensions involving Iran. Supply disruptions and maritime restrictions in key shipping routes have contributed to sharp increases in oil prices, with reports indicating Brent crude briefly surpassing levels not seen since 2022.

The broader geopolitical situation remains unstable despite reported ceasefire arrangements, with continued accusations between involved parties and ongoing concerns about maritime security in strategic waterways such as the Strait of Hormuz, a key route for global energy transport.

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