The United States has announced fresh sanctions on Iran, targeting its petroleum sector, including an oil refinery and several entities involved in the trade of Iranian crude. The move follows a letter from President Donald Trump warning of potential military action if Tehran refuses to engage in new nuclear negotiations.
The sanctions, unveiled on Thursday by the US Department of the Treasury’s Office of Foreign Assets Control (OFAC), focus on Shandong Shouguang Luqing Petrochemical Co., Ltd (Luqing Petrochemical), a Chinese independent refinery, also known as a “teapot” refinery. According to OFAC, the company purchased millions of barrels of Iranian crude oil valued at approximately $500 million. These shipments were allegedly facilitated by vessels linked to the Iran-backed Houthis, officially designated as a Foreign Terrorist Organization, as well as Iran’s Ministry of Defence and Armed Forces Logistics (MODAFL).
“Teapot refinery purchases of Iranian oil provide the primary economic lifeline for the Iranian regime, the world’s leading state sponsor of terror,” US Treasury Secretary Scott Bessent stated. “The United States remains committed to cutting off the revenue streams that fuel Tehran’s support for terrorism and its nuclear ambitions.”
The new sanctions also apply to 19 entities and vessels accused of transporting Iranian oil as part of Tehran’s “shadow fleet” of tankers. These measures fall under Executive Order 13902, which focuses on Iran’s petroleum and petrochemical industries. Additionally, the US State Department sanctioned another entity under Executive Order 13846 for engaging in significant transactions related to Iranian oil.
Iran Rejects US Pressure
The sanctions come in the wake of a letter from President Trump to Iran’s Supreme Leader, Ayatollah Ali Khamenei, urging renewed negotiations while warning of potential military consequences if Iran refuses to cooperate. Iranian Foreign Minister Abbas Araghchi described the letter as “more of a threat than an invitation to dialogue,” adding that Iran is carefully evaluating its contents before issuing a formal response.
Khamenei dismissed the US offer, stating that Washington’s approach was merely an attempt to influence global perception by portraying itself as open to negotiations while painting Iran as uncooperative. The letter, delivered by a senior diplomat from the United Arab Emirates on March 12, reportedly includes a two-month deadline for reaching a new nuclear agreement, according to a US official quoted by Axios.
Escalating US-Iran Relations
Trump, who returned to the White House in January, has reinstated his administration’s maximum pressure campaign against Iran, similar to his approach during his first term. His previous administration withdrew from the 2015 nuclear deal and reimposed severe economic sanctions. In response, Iran initially continued complying with the agreement before gradually reducing its commitments. Efforts by former President Joe Biden to revive the deal were unsuccessful, as Iran insisted on the removal of sanctions before engaging in direct talks.
On Thursday, Araghchi reiterated that Iran would not negotiate under coercion, stating, “Iran will not engage in talks under pressure, threats, or escalated sanctions.” With tensions rising between Washington and Tehran, the latest sanctions mark another chapter in the ongoing standoff over Iran’s nuclear program and regional activities.
