Tehran: When US President Donald Trump was traveling to the Middle East, he gave a new blow to Iran and China. The Trump administration has taken another tough step targeting Iran's alleged illegal oil trade as part of its 'maximum pressure' campaign. The US Finance Department has recently imposed strict sanctions on more than 20 companies, which are accused of playing an important role in transporting Iranian crude oil worth billions of dollars to China. This action is part of the strategy to stop Iran's oil exports and increase economic pressure on Tehran. According to the Trump administration, Iran is using money to promote regional instability and terrorism.
These sanctions target groups involved in Iran's alleged illegal oil trade, including several Hong Kong banks accused of being front companies for Sephar Energy. Sephar Energy is a commercial affiliate of the General Staff of Iran's Armed Forces. Sephar Energy is a key part of Iran's military apparatus. Through this, money from oil is used to fund ballistic missile programs, drone development, and regional terrorist groups, such as Yemen's Houthi rebels. Hong Kong banks allegedly mediated the supply of crude oil to Chinese independent refineries, known as 'teapots', and sent the proceeds back to Iran.
Action on Shadow Fleet
In addition, the sanctions have also targeted Sephar Energy's fleet of old 'Shadow Fleet' tankers, which are used to transport oil secretly. These tankers often use complex methods to hide their identity and avoid international monitoring, such as changing flags and turning off tracking systems. The US Treasury Department believes that Iran's oil export capacity could be severely affected by destroying such networks.
A US Treasury Department delegation met with Hong Kong banks in April and warned them against helping send Iran's oil shipments to China. The delegation stressed the risks of being involved in transactions related to Iran's oil trade, warning of possible sanctions and reputational damage.
What did China say on the sanctions?
China has strongly criticized these US sanctions. Beijing says Washington has illegally expanded its jurisdiction, which undermines the norms of global trade. The Chinese Foreign Ministry said in a statement that these sanctions not only harm the legitimate trade relations between Iran and China, but also create unnecessary instability in global energy markets. However, analysts believe that it will not be easy for China to respond to these sanctions, as it depends on the US financial system for its economy.
