Iran Under Pressure: Is Trump Preparing to Target China’s Oil Trade With Tehran? (Facebook)
Washington: To increase economic pressure on Iran, America is now preparing to target those institutions which are helping in maintaining Tehran's oil business. Among these, China's independent oil refineries i.e. 'teapot refineries' are especially the American target. According to reports, the Trump administration is considering options to impose more stringent sanctions on these refineries and financial networks related to Iranian oil.
China is the largest buyer of Iran's oil exports. According to Kpler data, more than 80 percent of the oil sent by sea from Iran will reach China in 2025. Independent refineries in China play a large role in purchasing Iranian crude.
America believes that the money received from Iran's oil sales is an important financial source for its government and military activities. In such a situation, if China's access to these refineries is limited, then Tehran's earnings can be directly affected.
China's small and independent refineries are commonly referred to as 'teapot refineries'. Many of these refineries are located in Shandong province. According to the US Treasury, these refineries have played a key role in the import of Iranian crude oil. The US has also imposed sanctions on many such companies from 2025 and also targeted Hengli Petrochemical in April 2026.
The biggest threat these refineries face is secondary sanctions. This means that foreign companies or financial institutions that do business directly with a sanctioned entity in Iran could also be vulnerable to US action.
US pressure is unlikely to be limited to oil companies only. The US Treasury has already indicated that secondary sanctions could also be imposed on foreign financial institutions that facilitate transactions related to Iran. In June, Treasury cracked down on networks linked to China and Hong Kong that were accused of helping Iran's military procurement and financial activities.
If America targets any big Chinese bank, it will not only affect Iran-China business but may also increase tension in relations between Washington and Beijing.
The US is continuously imposing sanctions on new individuals, companies, vessels and financial networks linked to Iran. But the question before experts is whether this will completely stop Iran's oil sales.
Iran and its business networks often use new companies, intermediaries, and ships to avoid sanctions. Such networks and 'shadow fleets' are being continuously targeted in American action.
The US strategy is discussing not only maritime and economic pressure, but also the possibility of limiting Iran's land trade routes. For this, the role of neighboring countries like Iraq, Türkiye, Pakistan, Afghanistan, Turkmenistan, Azerbaijan and Armenia can be important.
However, experts believe that it would be extremely difficult to blockade Iran by land route. It is not easy to implement due to long and in many places inaccessible boundaries. Apart from this, the consent and cooperation of neighboring countries will also be a big challenge.
The Trump administration may also consider the option of imposing additional economic pressure on countries doing business with Iran. There is also a discussion going on in the US Congress regarding new sanctions related to Iran and Russia. If in future the Trump administration gets the power to impose additional tariffs on such countries, then pressure on other trading partners including China may increase.
However, such a move could further escalate the already existing trade tensions between the US and China. Especially when there is a tussle going on between the two countries regarding the supply chain of essential minerals and advanced technology.
At present, America is increasing pressure on many fronts to weaken Iran's oil earnings and its related financial networks. China has become the most important part of this strategy because it is the largest buyer of Iranian oil. If Washington takes more stringent measures against Chinese 'teapot' refineries or large financial institutions, it could impact Iran's economy as well as US-China relations.
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