On March 20, 2025, the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) imposed sanctions on Shandong Shouguang Luqing Petrochemical Co., Ltd. (Luqing Petrochemical), a Chinese "teapot" oil refinery, and its Chief Executive Officer, Wang Xueqing.
The refinery was sanctioned for purchasing and refining Iranian crude oil valued at approximately $500 million, including oil transported by vessels linked to Houthis and the Iranian Ministry of Defense and Armed Forces Logistics (MODAFL).
Treasury Secretary Scott Bessent stated, "Teapot refinery purchases of Iranian oil provide the primary economic lifeline for the Iranian regime..."
In addition to targeting Luqing Petrochemical and Wang Xueqing, OFAC sanctioned 19 entities and vessels involved in transporting millions of barrels of Iranian oil. This action is part of a broader strategy to exert maximum pressure on Iran by targeting its petroleum and petrochemical sectors.