U.S. Sanctions Chinese Refinery and Freezes Iran-Linked Crypto, Raising Pressure Ahead of Second Negotiations

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[The Financial News] The U.S. Department of the Treasury (Treasury Department) and the United States Department of State (State Department) said on the 24th, local time, that they had placed Hengli Group, a major Chinese refinery that imports oil from Iran, on the sanctions list.
The Treasury Department explained the move by saying, "Hengli Group is buying billions of dollars worth of Iranian oil," and added, "By importing sanctioned oil, Chinese refiners are providing economic support to the Iranian government, including the Iranian military." Hengli Group owns a large refining facility in Dalian, a port city in northeastern China.
The Treasury Department also sanctioned about 40 shipping companies and vessels operating the so-called "shadow fleet" that illegally transports Iranian oil. In addition, it abruptly froze $344 million in cryptocurrency, which is believed to be linked to Iran.
U.S. Treasury Secretary Scott Bessent said on his X account, "We will systematically weaken Tehran's ability to generate, move, and bring home funds," adding, "This will help apply financial pressure on the Iranian regime, weaken its aggression in the Middle East, and curb its nuclear ambitions."
The announcement of the tough sanctions is seen as a move to pressure Iran ahead of the second ceasefire negotiations. It is also being interpreted as a multipurpose step to secure leverage in advance of President Donald Trump's planned visit to China in mid-next month.
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security@fnnews.com Park Kyung-ho Reporter