The United States has imposed fresh sanctions on Iran, targeting an oil refinery and multiple entities involved in the country’s petroleum trade, following a letter from President Donald Trump that warned of potential military action if Tehran refused new nuclear talks.
The US department of the treasury’s office of foreign assets control (OFAC) announced new measures on Thursday, sanctioning a Chinese “teapot” refinery and its chief executive for purchasing Iranian crude oil. According to OFAC, Shandong Shouguang Luqing Petrochemical Co., Ltd (Luqing Petrochemical) acquired millions of barrels of Iranian oil worth around half a billion dollars. The shipments were facilitated by vessels linked to the Foreign Terrorist Organization, Ansarallah, also known as the Houthis, and Iran’s Ministry of Defence and Armed Forces Logistics (MODAFL).
“Teapot refinery purchases of Iranian oil provide the primary economic lifeline for the Iranian regime, the world’s leading state sponsor of terror,” said US Treasury Secretary Scott Bessent. “The United States is committed to cutting off the revenue streams that enable Tehran’s continued financing of terrorism and development of its nuclear programme.”
The latest measures also target 19 entities and vessels that have transported millions of barrels of Iranian oil as part of Iran’s “shadow fleet” of tankers. OFAC’s actions are in accordance with Executive Order 13902, which focuses on Iran’s petroleum and petrochemical sectors. Additionally, the US State Department sanctioned another entity under Executive Order 13846 for conducting significant transactions related to Iranian oil.
These sanctions come after Trump sent a letter to Iran’s Supreme Leader Ayatollah Ali Khamenei, calling for renewed negotiations while warning of military consequences if Tehran refused. Iranian Foreign Minister Abbas Araghchi said on Thursday that the letter was “actually more of a threat” rather than an offer of dialogue. He added that Iran was analysing its contents and would respond soon.
Khamenei dismissed the overture, stating that the US attempt to engage in talks was a ploy to shape global public perception, portraying Washington as willing to negotiate while casting Iran as the intransigent party. Iran’s foreign ministry confirmed that it was conducting a “thorough assessment” before formulating a response. The letter, delivered by a senior diplomat from the United Arab Emirates on March 12, reportedly set a two-month deadline for reaching a new nuclear deal, according to a US official cited by Axios.
Trump, who returned to the White House in January, has reinstated his maximum pressure policy on Iran, mirroring his stance during his first term. His administration previously withdrew from the 2015 nuclear agreement and reimposed severe economic sanctions. Tehran initially continued adhering to the deal for a year but later began rolling back its commitments. Efforts under Joe Biden’s administration to revive the agreement were unsuccessful, with direct US-Iran talks never materialising due to Tehran’s insistence that sanctions be lifted first.
On Thursday, Araghchi reaffirmed that Iran would not enter negotiations under coercion, stating, “Iran definitely will not negotiate directly while facing pressure, threats, and increased sanctions.”