Baku, Azerbaijan, March 29. According to an
outlook from Rystad Energy, the latest round of U.S. sanctions on
Iran targets a Chinese-owned “teapot” oil refinery, marking a
significant escalation in efforts to tighten economic pressure on
Tehran, Trend
reports.
The Shouguang Luqing refinery, which processes up to 60,000
barrels per day (bpd) of Iranian crude, is now in the crosshairs of
U.S. measures. If these sanctions expand to other similarly
independent refineries, the effects could be felt globally,
potentially reshaping geopolitics and impacting energy markets.
Although the situation has not yet reached a “maximum pressure”
stage—where Iranian oil exports could drop from 1.5 million bpd to
near zero—the U.S. is intensifying its efforts to bring Tehran back
to the negotiation table for a new nuclear deal. However, the
growing pressure risks driving oil prices higher, which would be
counterproductive to President Donald Trump’s stated goal of
lowering energy costs to combat inflation.
Rystad Energy’s data highlights that nearly all Iranian crude
exports are directed to China, so effective pressure on Iran would
require Beijing’s cooperation. The targeting of a Chinese refinery
may indicate that the U.S. is trying to leverage China, the largest
importer of Iranian oil, to reduce or stop its purchases
altogether. This is the fourth round of sanctions, and each round
brings increased economic pressure on Tehran. Just days before this
move, the U.S. revoked a sanction waiver that allowed Iraq to
import electricity from Iran, further tightening the noose around
the Iranian economy.
Jorge León, Head of Geopolitical Analysis at Rystad Energy,
emphasized that this growing pressure could have widespread
ramifications, not only for Iran but for global energy markets and
geopolitics as well.