The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has intensified efforts against Iran’s petroleum and petrochemical exports, announcing sanctions against more than 50 individuals, entities, and vessels involved in facilitating Iranian oil and liquefied petroleum gas (LPG) sales and shipments.

This sweeping action targets a complex network moving hundreds of millions of dollars’ worth of Iranian LPG, along with nearly two dozen shadow fleet vessels, a China-based crude oil terminal, and an independent “teapot” refinery that have been key to Iran’s ability to generate significant revenue from petroleum exports.

“The Treasury Department is degrading Iran’s cash flow by dismantling key elements of Iran’s energy export machine,” said Secretary of the Treasury Scott Bessent. “Under President Trump, this administration is disrupting the regime’s ability to fund terrorist groups that threaten the United States.”

The sanctions represent the fourth round where the Trump Administration has specifically targeted China-based refineries that continue to purchase Iranian oil, building on previous actions in July and August that targeted key enablers of Iran’s oil exports.

At the center of these sanctions is an LPG sanctions evasion network operating primarily through UAE-based companies, including Markan White Trading and Slogal Energy DMCC, which have facilitated the sale and shipment of Iranian LPG to destinations including Sri Lanka, Bangladesh, and China. The Treasury identified multiple vessels involved in these operations, including the Panama-flagged GAS DIOR and Palau-flagged MAX STAR.

Iran’s shadow fleet employs sophisticated obfuscation tactics to mask the origin of petroleum shipments, often transferring cargoes between vessels in the Persian Gulf and in waters off Singapore and Malaysia. According to OFAC, shipping agents like Qingdao Hexin in China have assisted vessels in offloading millions of barrels of Iranian oil at Chinese ports.

The sanctions also target China-based Shandong Jincheng Petrochemical Group, an independent refinery that has purchased millions of barrels of Iranian oil since 2023, and Rizhao Shihua Crude Oil Terminal, which has accepted numerous shadow fleet vessels delivering Iranian petroleum.

Multiple shipping companies and their vessels have been designated for their role in transporting Iranian petroleum products, including firms based in Hong Kong, Marshall Islands, Singapore, and the UAE. Several tugboats used to facilitate ship-to-ship transfers of Iranian cargoes have also been targeted.

As a result of these sanctions, all property and interests of the designated persons that are in the United States or in possession of U.S. persons are blocked and must be reported to OFAC. The Treasury warned that violations of U.S. sanctions may result in civil or criminal penalties for both U.S. and foreign persons.