Amidst the war with Iran, America has banned China’s major oil refinery Hengli Petrochemical and 40 shipping companies and tankers, after which Beijing has now reacted strongly. Beijing said it strongly opposes US sanctions on Chinese oil refineries and is determined to protect its interests.

America had taken action against China for purchasing oil from Iran because it had imposed a ban on Tehran’s oil export, despite that China was continuously purchasing oil from it. The US Treasury Department had said that the purpose of these sanctions is to completely stop Iran’s main source of income – oil exports.

Also read- Iran is ready to open Hormuz, put a big condition before America, what will Trump do now?

Hengli is China’s largest refinery

China’s largest refinery Hengli Petrochemical, which processes about four lakh barrels of crude oil daily, has also been hit by these sanctions imposed by the Trump administration. The US Finance Department says that Hengli Refinery has been consuming Iranian oil since 2023. This refinery is said to be one of the major buyers of Iranian oil.

What action was taken against China?
US Finance Secretary Scott Besant, while taking action against China, had said that the Trump administration is tightening the financial grip on the Iranian regime. This will help in stopping its aggression in the Middle East and curbing its nuclear ambitions. In this action, about 40 shipping companies and ships have also been targeted, which are considered part of Iran’s so-called ‘Shadow Fleet’.

Also read- America’s big action amid war with Iran, ban on China’s refinery, why did Donald Trump take this decision?

Action will be taken against whoever is involved in this: Besant

Giving a strong message to the countries of the world, America said that action will be taken against any ship which transports Iranian oil to other countries, which strengthens the Iranian regime. Scott Besant also said that on the instructions of Donald Trump, America will continue to take action against the ships, middlemen and buyers who help in delivering Iranian oil to the world markets. He warned that any person or ship involved in this work may have to face American sanctions.

Cheapest Oil India: Amidst rising global tensions and fluctuating fuel prices, India’s crude oil procurement strategy has become more important than ever. Global trade routes are changing due to supply disruptions and restrictions. In such a situation, India is actively importing oil from many countries. Let us know which country is at the forefront in terms of cheapest source.

India’s most affordable oil supplier

At present, Russia is India’s largest and cheapest supplier of crude oil. India is importing oil from Russia at the rate of about $94 per barrel. This is much lower than other global suppliers. Russia’s share in India’s total imports has been between 31% to 41%.

However, after the Ukraine war, Russia initially offered a huge discount of up to $35 per barrel. However, due to geopolitical pressure and sanctions, this discount has now reduced to just $2 to $3 per barrel.

Venezuela and Iran

India is looking for new low-cost options like Venezuela and Iran. Venezuela has re-emerged as a supplier after the US eased sanctions. Similarly, Iran has restarted the supply of oil to India after almost 7 years.

traditional supplier

Apart from concessional oil sources, India also continues to import oil from countries like America, Saudi Arabia, Iraq and United Arab Emirates. Of these, America is the most expensive supplier. Saudi Arabia, Iraq and UAE remain major suppliers due to their reliability. But their prices are usually higher compared to Russia.

Logistics and transportation costs

The role of transportation in the total cost is very important. It takes only three days for oil from Saudi Arabia to reach India. Along with this, its freight cost is also less. This makes it a decent option despite the base price being high. In comparison, Russian oil takes about 15 days to reach. Along with this, the consignment coming from USA may take 45 to 50 days.

Also read: High-voltage drama going on on Hormuz, US and China clash with each other, then which country suffers the most?

Donald Trump: US President Donald Trump has given a big statement on Saturday. He said that instead of buying oil from Iran, India will buy oil from Venezuela. He made this statement while talking to reporters on his official plane Air Force One en route to Florida.

Trump said, “We have already made that deal. The concept of the deal is done.” He explained that ‘Concept of Deal’ means the basic structure of the deal, its understanding or preliminary agreement between the two parties before finalizing the deal.

‘China is also welcome’

Trump also said that if China wants, it can make a deal with America to buy oil from Venezuela and it is welcome.

US strategy and previous sanctions

Earlier, this information had come to light that America had told the Indian government that it can soon resume the purchase of oil from Venezuela, so that oil imports from Russia can be replaced. Three sources gave this information to Reuters.

The US move is seen as an attempt to reduce oil revenues that finance Russia, which is helping in the Ukraine war. In March last year, Trump had imposed a 25% tariff on countries buying oil from Venezuela, including India.

US President Donald Trump gave a big statement

US President Donald Trump had earlier praised the US-led initiative in the matter related to Venezuela. He said that this process is moving in a very positive direction and the export of oil from Venezuela is expected to resume soon. This entire system has been prepared with the support of Washington. During a conversation with the media in the Oval Office, Trump said, “The leadership is doing a very good job in the Venezuela situation. We are moving forward by maintaining better coordination with everyone associated with this entire process.”

He also told that many countries of the world will soon start buying oil from Venezuela and America will play an important role in this initiative. “We’re inviting the countries of the world. They’re going to start taking the oil. We’ll lead this whole plan, and so far it’s working very well,” Trump said.

US agencies have imposed sanctions on eight Indian citizens and ten companies for their links with Iran’s oil and petrochemical business. This action is part of the new round of international sanctions. The US State Department and the Treasury Department have altogether imposed sanctions on more than 100 individuals, companies and vessels. The names of many Indians and India-based companies have been included in the list of the Office of Foreign Assets Control (OFAC) of the US Treasury Department.

Many Indian citizens in US Treasury’s list
The names of Mumbai’s Niti Umesh Bhatt, Kamala K Kasat, Kunal Kasat and Poonam Kasat are included in this action of America. Apart from this, sanctions have also been imposed against Tamil Nadu-born Ayyappan Raja, Tirupati’s Varun Pulla, Piyush Maganlal Javia and Sonia Shrestha. All of them are accused of playing an important role in the oil and gas business related to Iran and violating US sanctions.

Accusations of sending Iranian LPG to China and Pakistan
US officials say Varun Pulla’s company Bertha Shipping transported approximately four million barrels of Iranian LPG to China using a Comoros-flagged ship. Similarly, Ayyappan Raja’s company Ivy Lines, based in the Marshall Islands, sent one million barrels of LPG to China through a Panama-flagged ship. Sonia Shrestha’s India-based company Vega Star Ship is accused of supplying LPG from Iran to Pakistan using Comoros flagged ship ‘NEPTA’.

Indian companies accused of large scale imports
According to the US State Department, between January 2024 and January 2025, India’s CJ Shah & Company imported petrochemical products worth $44 million from Iran. Zavia’s company Chemovic is accused of importing Iranian petrochemical products worth seven million dollars. BK Sales Corp is accused of importing Iranian products worth $235 million, while Modi Chem is accused of importing Iranian products worth $49 million between January 2024 and February 2025.

Additionally, Parikem Resources imported petrochemical products worth $2 million from several companies between May and November 2024. These include Shivanani Organics FZE, which is included in the US sanctions list. These products also contained chemical ingredients like toluene.

American action against Harris Petrochem and Indisol also
Niti Bhatt’s company Indisol is accused of shipments worth $74 million between January and December 2024. Similarly, Haresh Petrochem, a company of the Kassat family, imported products of Iranian origin worth 10 million dollars in the next 13 months from January 2024. All these transactions have been considered a violation of US sanctions.

America’s strict message
America has made it clear that it is not going to spare any country, company or person associated with Iran’s oil and petrochemical business. Washington says that through such actions it wants to make the international sanctions imposed on Tehran more effective.