economy
May 4, 2026
China has ordered refineries to ignore US sanctions on Iranian oil trade
China has instructed its private refineries not to comply with US sanctions targeting companies allegedly involved in Iran’s oil trade
TL;DR
- China's Ministry of Commerce has instructed domestic companies to ignore US sanctions on Iranian oil trade.
- Beijing argues that sanctions without a UN mandate are illegal under international law.
- The US Treasury had previously warned banks against dealing with "teapot" refineries linked to Iranian oil.
- China denies direct purchases of Iranian crude, and customs data has not recorded imports since 2023.
- The move is framed as protecting "national sovereignty, security and development interests."
- Oil prices have surged, exceeding $120 per barrel, due to ongoing conflict and the closure of the Strait of Hormuz.
- The conflict has also impacted US President Trump's approval rating and relations with European allies.
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