The United States on Wednesday sanctioned a group of mainland Chinese and Hong Kong shipping companies accused of operating vessels that transported Iranian oil to China, extending Washington’s economic campaign against Tehran alongside its naval blockade.
The US State Department said eight companies were designated for operating vessels that moved Iranian crude oil and petrochemical products to China and the United Arab Emirates as part of Iran’s sanctions-evading “shadow fleet”.
Six of the eight vessels identified by the US Treasury Department were specifically accused of carrying Iranian crude to China, in some cases transporting millions of barrels during 2026.
The designations freeze any assets belonging to the targeted companies within US jurisdiction and generally prohibit US individuals and businesses from dealing with them.
Foreign financial institutions and other companies could also face sanctions exposure if they continue to conduct certain transactions involving the designated firms.
“Today’s designations support the US Navy’s enforcement of a blockade on Iranian ports and coastline,” State Department spokesman Tommy Pigott said.
The action also targeted two Iranian companies accused of forcing commercial vessels passing through the Strait of Hormuz to buy maritime insurance against risks, including seizures, that Washington says are created by Tehran itself.
“With its economy in free fall and inflation in the triple digits, the regime is desperate for cash,” Treasury Secretary Scott Bessent said.
“The United States will not allow Iran to hold global commerce hostage or use international shipping to finance the IRGC’s terrorism, aggression and repression,” Bessent said, referring to the Islamic Revolutionary Guard Corps.
One of the sanctioned vessel-management companies is based in mainland China, while five others are based wholly or partly in Hong Kong, according to Treasury.
China rejected the allegations and accused Washington of abusing sanctions to target Chinese businesses.
“Our cooperation with Iran is open, transparent, lawful and legitimate, and thus should be respected,” Liu Pengyu, spokesman for the Chinese embassy in Washington, said.
“China firmly opposes groundless smears and unwarranted association and firmly opposes the US side abusing illicit unilateral sanctions and long-arm jurisdiction against China.”
Liu urged Washington to “stop going after Chinese companies”, saying Beijing would “continue to do what is necessary to firmly defend the legitimate and lawful rights and interests of Chinese companies”.
Pigott said protecting navigational rights and freedoms in the strait was a “global interest” and that Washington would work with allies to isolate Tehran until it stopped what he called destabilising behaviour.
His statement explicitly linked the economic measures to the US naval blockade, saying the sanctions supported its enforcement along Iran’s ports and coastline.
China a central target in US campaign against Iranian oil exports
China has emerged as a central target of Washington’s campaign against Iran’s oil exports. US officials have repeatedly accused Chinese buyers and shipping networks of providing Tehran with an economic lifeline by purchasing discounted crude despite American sanctions.
Among the companies designated on Wednesday was mainland China-based Qi Hang Ship Management Limited, the owner and operator of the Marshall Islands-flagged Well Sail.
Treasury said the tanker carried hundreds of thousands of barrels of Iranian petroleum products to the United Arab Emirates this year.
It also sanctioned Hong Kong-based Confident Apex Limited, which owns and operates the Mozambique-flagged Lily. The vessel has transported millions of barrels of Iranian oil since 2025, according to the department.
The other targeted vessels had more explicit links to China-bound shipments.
Treasury said the Al Salmi, owned and operated by Hong Kong-based Billion Nexus International, had delivered hundreds of thousands of barrels of Iranian oil to China since last year.
The Breeze V, operated by Hong Kong-based Nevada Spirit Company, allegedly transported millions of barrels to China this year, while the Natsumi, managed by Hong Kong-based Marinova Freight, had carried millions of barrels of Iranian crude to China since 2022.
Another tanker, the Crystal, is owned and operated by Vast Mighty Limited, which Treasury described as based in Hong Kong and the Marshall Islands. It allegedly carried millions of barrels of Iranian oil to China this year.
Two other vessels managed by Marshall Islands-based companies – the Nireta and Yehope – transported hundreds of thousands of barrels of Iranian crude to China during 2026, Treasury said.
Beijing has consistently opposed unilateral US sanctions against its companies and defended its economic relations with Iran as legitimate.
US also targets Iran-based organisations over Hormuz extortion claims
The latest action also targeted the Persian Gulf Marine Insurance Company and the Hormuz Safe Marine Services Authority, an Iranian digital insurance business that accepts bitcoin and other digital assets.
Treasury accused the two companies of helping Iran impose mandatory insurance charges on ships seeking to pass through the Strait of Hormuz, one of the world’s most important energy corridors, in an “extortion scheme”.
The policies purportedly protect vessels against risks including seizures, but those dangers are “overwhelmingly created by Iran itself”, the department said.
Treasury said Hormuz Safe, developed by Iran’s Ministry of Economy, offers insurance, traffic control, security and emergency-response services while generating revenue for the IRGC.
The State Department described the insurance arrangements as coercive schemes in which Iranian entities “manufacture risk” and then charge commercial vessels for protection against dangers created by the government.
Revenue generated by the arrangements supports IRGC operations and Iran’s broader regional activities, according to Washington.
Trump administration puts pressure on Iran-China relationship
The sanctions come as Washington steps up both military and economic pressure on Tehran over control of the strait and the continued movement of Iranian energy exports.
The Trump administration has sought to prevent vessels trading with Iran from passing through the waterway while accusing Tehran of attempting to profit from restrictions on commercial shipping.
Washington said it would continue targeting Iran’s shadow-fleet operations and “deceptive financial schemes” while working with allies to isolate Tehran diplomatically and economically.
Treasury said it had sanctioned more than 100 vessels linked to Iran’s shadow fleet since the beginning of the year.
The ships form part of a network that uses foreign flags, shell companies, obscured ownership arrangements and other methods to keep Iranian oil flowing despite Western restrictions.
China is the leading destination for Iranian crude, much of which is sold at a discount and transported through networks intended to disguise the oil’s origin and ownership.
Washington has previously targeted small Chinese refineries, shipping companies, port operators and storage facilities accused of taking part in the trade. Beijing maintains that normal commercial relations between China and Iran should not be subject to US jurisdiction. -- SOUTH CHINA MORNING POST
