New US Sanctions Against Iran's Oil Trade Network Including a Storage Terminal in China

The United States has imposed new sanctions against Iran's oil trade network, including a crude oil storage terminal in China connected to an independent refinery via pipeline. These sanctions, announced on Thursday, April 21, come just two days before negotiations between US and Iranian representatives in Oman are set to begin. President Donald Trump has stated that if these negotiations fail, Iran will face significant risks. According to Reuters, the US has added 'Guangsha Zhoushan Energy Group' to its new sanctions list, which it claims manages a crude oil and petroleum products terminal on 'Hangzhoushan' Island in Zhoushan, China. The US State Department says this terminal knowingly purchases Iranian oil and directly transfers it to an independent refinery known as 'Quri' via the Huang Zhoushan-Yushan underwater pipeline. US Treasury Secretary Scott Busent stated, 'The United States remains focused on disrupting all factors of Iran's oil exports, especially those looking to profit from this trade.' The report adds that the mentioned terminal has purchased Iranian crude oil at least nine times between 2021 and 2025, including from vessels under US sanctions, amounting to at least 13 million barrels of oil. China, the largest importer of Iranian oil, does not recognize US sanctions. China and Iran have established a trade system that primarily uses the Chinese yuan and a network of intermediaries to avoid transactions in dollars and exposure to US oversight. The Chinese embassy in Washington did not respond to Reuters' request for comment on this matter. However, a Chinese government spokesperson reacted in March to the sanctions on a Quri refinery, stating, 'China has always strongly opposed illegal and unjust unilateral sanctions and the so-called jurisdiction of the United States.' This is the latest round of extensive sanctions from Washington against Iran since Trump's administration took office in January. The US President announced in February that the 'maximum pressure' campaign, including efforts to reduce Iranian oil exports to zero, has been resumed to prevent the Islamic Republic from acquiring nuclear weapons. Iran claims its nuclear program has only peaceful objectives. Bloomberg reported that around 17 million barrels of Iranian crude oil are stranded around Malaysia without buyers. The US Treasury also sanctioned Joginder Singh Barar, an Indian citizen based in the UAE, who owns shipping companies with a fleet of 30 vessels. The Treasury stated that Barar's ships participate in the risky transfer of Iranian oil from ship to ship in the waters of Iraq, Iran, the UAE, and the Gulf of Oman. The sanctions also target two entities based in the UAE and two entities based in India that own and operate Barar's vessels. They have been accused of transporting Iranian oil on behalf of the National Iranian Oil Company and Iran's military sector. The US Treasury Secretary stated, 'The Iranian regime relies on its irresponsible network of carriers and brokers like Barar and his companies to sell oil and fund its destabilizing activities.' Under the sanctions, the assets of these companies and individuals will be blocked in the United States, and Americans will be prohibited from trading with them.