Tension grows between USA and Iran, not only on the nuclear, but also on the PetroleumYesterday's news was that the United States has sanctioned part of a Iranian “shadow fleet” di tankers Chinese calls Teapot which supply some refineries. On the subject of nuclear, Trump, who asked Tehran to negotiate on nuclear issues, threatening military action otherwise, received an immediate and harsh response from Khamenei. The United States are committed to cut revenue streams which allow to Tehran to continue to finance terrorism and the development of its nuclear program. Meanwhile, the France, after the release of one of its compatriots imprisoned in Iran for over 880 days, urges its citizens not to travel to Iran. oil price goes up, but is cautious in view of the decisions of OPEC+.
US sanctions China's first 'Teapot' refinery over Iran ties
The investigations had been ongoing since February, when Trump promised to reimpose a campaign of "maximum pressure" on Tehran, committing to reduce the country's oil exports to zero. Yesterday, OFAC, the Office of Foreign Assets Control of the US Department of the Treasury, announced the fourth round of sanctions against Iran: this time it was sanctions against a Chinese oil refinery and its Ceo for purchased and refined Iranian crude oil for a value of hundreds of millions of dollarsThe oil came from ships linked to Ansarallah, aterrorist organization, And the Iranian Ministry of Defense of the logistics of the armed forces. OFAC has imposed sanctions also to 19 other entities and ships for shipping millions of barrels of Iranian oil. These oil shipments are part of the Iranian "shadow fleet" of oil tankers that supply refineries teapot such as Luqing Petrochemical.
China's 'Teapot' Refineries Crucial Link in Oil Trafficking
Le Chinese private refineries, known as “teapots,” they are a key link in the supply chain of the world's largest oil importer and largest buyer of Iranian oil, but have so far escaped U.S. blacklists, which have instead focused on middlemen and individual tankers. The sanctioned refinery, Shandong Shouguang Luqing Petrochemical Co., is not one of the largest private transformers in China, but It is part of a constellation of operators in eastern Shandong province. Also theCEO of the refinery, Wang Xueqing, has been sanctioned, the U.S. Treasury said. Washington also sanctioned a terminal operator in the southern region of Guangdong. The smaller, privately operated terminals, have become an increasingly important part of the trade, as larger port operators retreat.
Purchases by small, independently operated oil refiners in China “provide the Iranian regime’s primary economic lifeline,” the Treasury Secretary said. Scott Bessent. “The United States is committed to cut the flows of revenues that allow Tehran to continue to finance terrorism and the development of its nuclear program."
Also according to the Treasury Department, Luqing Petrochemical purchased millions of barrels of Iranian oil worth approximately 500 million dollars. It also received Iranian crude oil carried by previously sanctioned vessels linked to the Houthi rebels which attacked shipping in the Red Sea, he added.
The US Treasury, as reported Bloomberg, is also sanctioning other vessels allegedly linked to a “shadow fleet” of ships carrying Iranian oil. They include the Comoros-flagged Natalina 7; the Panama-flagged Catalina 7, Aurora Riley and Viola; the San Marino-flagged Montrose; the Barbados-flagged Volans and Brava Lake; and the currently unflagged Titan. Registered owners Astrid Menks Limited and Canes Venatici Limited, both based in Hong Kong, have also been sanctioned, along with China-based Citywallship Management Co. Ltd. and Liberia-based Placencia Services Incorporation.
The storage terminal targeted by Washington is operated by Huaying Huizhou Daya Bay Petrochemical Terminal Storage Co., a private storage and terminal operator controlled by Wintime Energy Group Co. , listed in Shanghai.
China wants the US to stay out
“The United States has continuously abused its unilateral sanctions and its long-term enforcement,” Mao Ning, spokeswoman for China’s Ministry of Foreign Affairs, said Friday. The United States should stop interfering in normal China-Iran cooperation, and Beijing will take necessary measures to defend the rights of its companies, he said. Trump had already shown during his first term that he was willing to target the supply chain that transports Iranian oil to China, regardless of the impact on the market. In the past, the United States sanctioned a major Chinese shipping company, causing a brief but major disruption in oil tanker markets that sent oil prices skyrocketing.
Khamenei: “The language of threat does not work with Iran”
Meanwhile, the confrontation/clash between the United States and Iran continues, also on nuclear issues. After American President Donald Trump asked Tehran to negotiate on nuclear issues, threatening military action if it did not, yesterday the Supreme Leader of the Islamic Republic, Ali Khamenei, he responded: “The United States should know that the language of threat does not work with Iran. Adversaries will receive a hard slap if they carry out threats against Iran,” theagency more, while Foreign Minister Abbas Araghchi reiterated yesterday that Tehran does not want to negotiate directly with Washington.
Oil prices in the balance between sanctions and OPEC+
The U.S. move, seen by the market as a step forward for Washington, pushed oil prices higher, poised to record their best weekly performance since January, around +2%. Brent crude futures rose 0,5%, while U.S. West Texas Intermediate crude futures rose 0,6%. Oil prices also received support from U.S. inventory data, which showed resilient demand from the world's largest fuel consumer.
Attention also goes to the oscillating decisions coming from theOPEC + and a new OPEC+ plan, announced yesterday, plans to reduce further production to offset production above agreed levels. The plan would represent monthly cuts of between 189.000 bpd and 435.000 bpd and would run until June 2026.
Instead, earlier this month OPEC+ said eight of its members would proceed with a monthly increase of 138.000 bpd from April, reversing some of the 5,85 million bpd of production cuts agreed in a series of steps from 2022 to support the market.
France, after the release of its compatriot, warns the French to go to Iran
The French Foreign Ministry, immediately after the release of one of its compatriots, imprisoned in Iran for over 880 days, has launched a warning to its citizens. Christophe Lemoine, spokesman for the Ministry of Foreign Affairs, urged the French citizens to refrain from traveling to Iran, stressing that they are running a “immediate risk” of being detained without reason. “They are at immediate risk of being arrested and detained without motive, or for the sole reason of being French or European citizens", he has declared.
