U.S. warns banks of sanctions risk over China ‘teapot’ refineries handling Iranian oil
CNBC • • nation
Key Points:
- The U.S. Treasury warned financial institutions they may face sanctions for dealing with Chinese "teapot" refineries that process Iranian oil, urging enhanced due diligence on related transactions.
- China buys about 90% of Iran's oil exports, with smaller independent refineries in Shandong province accounting for most imports, which ultimately fund Iran's regime and military programs.
- The Treasury has sanctioned multiple Chinese teapot refineries and expanded sanctions to include port operators and logistics providers linked to Iranian oil shipments, which often use covert tanker fleets and ship-to-ship transfers to evade detection.
- Iranian oil is sometimes disguised by blending with other countries' supplies or relabeling, commonly referred to as "Malaysian blend," to obscure its origin.
- This warning precedes a planned U.S. visit to Beijing amid ongoing tensions, with China opposing unilateral sanctions and both the U.S. and Iran maintaining a tense ceasefire.
