The Trump administration has imposed fresh sanctions targeting Iranian oil trading networks, including a crude oil storage terminal in China linked to an independent refinery, just days ahead of planned talks between the U.S. and Iran.
The sanctions specifically targeted Guangsha Zhoushan Energy Group Co Ltd, which operates a crude oil and petroleum products terminal located on Huangzeshan Island in Zhejiang Province, China. The U.S. State Department stated that the terminal knowingly engaged with oil from Iran and is connected to an independent refinery via the Huangzeshan-Yushan Under Sea Oil Pipeline.
The State Department emphasized that the terminal, though not a major player in Iranian oil, had acquired Iranian crude at least nine times between 2021 and 2025, including shipments from U.S. sanctioned vessels. The terminal has imported approximately 13 million barrels of Iranian crude oil, according to the department.
Although tanker tracking companies Vortexa and Kpler, along with trade sources, reported that the refinery has refrained from buying Iranian oil recently, the U.S. maintains that the refinery and its associated terminal play a significant role in the trade and processing of Iranian crude.
The U.S. sanctions package also included designations against UAE-based shipping magnate Jugwinder Singh Brar and several associated entities involved in high-risk ship-to-ship transfers of Iranian oil in the Gulf region. The sanctions block the U.S. assets of the designated individuals and entities, preventing Americans from engaging in business with them.
China's response to U.S. sanctions has been consistently critical. In response to a similar sanction last month on a Chinese refinery, a spokesperson from the Chinese embassy in Washington reiterated Beijing's opposition to "illegal and unjustifiable unilateral sanctions."
The latest sanctions follow U.S. President Donald Trump’s declaration of a "maximum pressure" campaign aimed at driving Iran’s oil exports to zero, a key component of his strategy to prevent Iran from developing nuclear weapons. Iran insists its nuclear program is intended for peaceful, civilian purposes.
While these sanctions will likely have an impact on the entities directly involved, sanctions expert Jeremy Paner pointed out that targeting Chinese banks or insurance groups would be more effective in pressuring Iran's oil trade. However, the U.S. appears to be maintaining a broader strategy to disrupt Iran's oil exports while keeping diplomatic channels open ahead of negotiations.
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