OFAC sanctions Hengli refinery, 19 vessels and linked firms in Iran oil crackdown

WASHINGTON, April 24, 2026 — The U.S. Treasury’s Office of Foreign Assets Control sanctioned China-based Hengli Petrochemical (Dalian) Refinery Co., Ltd., saying the independent “teapot” refinery has been one of Iran’s largest customers for crude oil and other petroleum products, purchasing billions of dollars’ worth of Iranian petroleum. Treasury said the action also targets about 40 shipping firms and vessels tied to Iran’s shadow fleet.

OFAC’s recent actions page shows Hengli was added to the SDN List under Executive Order 13902, alongside 18 other entities and 19 vessels. The newly listed vessels include LPG tankers and crude oil tankers linked to owners or managers in Hong Kong, the Marshall Islands, Panama, Vietnam, the UAE and elsewhere. Treasury said those vessels transported Iranian crude, LPG and other petroleum or petrochemical cargoes to markets in Asia and beyond.

Treasury said Hengli, China’s second-largest teapot refinery, has received Iranian oil cargoes from already sanctioned shadow fleet vessels since at least 2023 and has also received shipments overseen by Sepehr Energy Jahan Nama Pars Company, described by Treasury as the oil sales arm of Iran’s Armed Forces General Staff. Treasury said the refinery’s purchases generated hundreds of millions of dollars in revenue for the Iranian military.

At the same time, OFAC issued Iran-related General License V, authorizing transactions ordinarily incident and necessary to the wind down of dealings involving Hengli, or entities it owns 50% or more, through 12:01 a.m. EDT on May 24, 2026. The license says any payment to a blocked person must be made into a blocked, interest-bearing account in the United States, and it does not authorize transactions with other blocked persons unless separately authorized.