Ahead of China Visit, Trump Ramps Up Pressure... Sanctions Iranian Crude Oil Export Network to China

US Treasury: "Cutting Off Funding Sources for the Iranian Regime"

The Donald Trump Administration has ramped up pressure on Iran by imposing additional sanctions on individuals and companies involved in the export network of Iranian crude oil bound for China, just ahead of the upcoming U.S.-China summit.

On May 11 (local time), the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced that it had designated three individuals and nine companies that supported the export of Iranian crude oil to China as new targets for sanctions.

The Department of the Treasury explained that the Islamic Revolutionary Guard Corps (IRGC) has used front companies established in countries with lax regulations to conceal their role in oil sales and to funnel the proceeds to the Iranian regime.

All three individuals targeted by the sanctions are Iranian nationals. Among the nine companies, four are based in Hong Kong, four in the United Arab Emirates (UAE), and one in Oman. The U.S. believes that these companies were involved in the trading, transportation, and financial flows related to Iranian crude oil and supported its export to China.

U.S. Secretary of the Treasury Scott Bessent stated in a press release, “Operation Economic Fury will continue to cut off funding for the Iranian regime’s weapons programs, terrorist proxies, and nuclear ambitions.”

Operation Economic Fury is an economic pressure strategy being pursued alongside the U.S. military operation against Iran, “Epic Fury.” Under the new sanctions, the assets of the targeted individuals and companies within the United States will be frozen, and any transactions with U.S. persons or companies will be prohibited.

With the negotiations between the U.S. and Iran on ending hostilities and the nuclear issue at a stalemate, the Trump Administration is intensifying its pressure through economic sanctions. On May 8, the Department of the Treasury also sanctioned 10 entities, including Chinese and Hong Kong companies and individuals involved in supporting Iran’s weapons and drone production.