Iranian oil: US sanctions against a Chinese company for violation of the embargo

The United States targets Zhuhai Zhenrong for engaging in a "significant transaction" for "the purchase of crude oil". Block properties and interests; Beijing protest. The US and Iran clash and the Sino-American trade war are fuelling price hike of crude oil.

Tehran (AsiaNews / Agencies) - The United States has targeted Zhuhai Zhenrong Co., a Chinese oil company, with sanctions for (alleged) violations of Washington's restrictions on the crude oil of the Islamic Republic. The announcement was made by US Secretary of State Mike Pompeo, in a context of growing tension between Tehran and the West and between Americans and Chinese in an ongoing trade war.

In a statement, the head of US diplomacy pointed out that Zhuhai Zhenrong agreed "a significant transaction" to "buy crude oil" from Iran. An operation that violates the restrictions imposed by the administration of President Donald Trump, which have become even tighter at the end of the exemptions to some nations.

Washington has therefore decided to block all the properties and interests of the Chinese state company in the US and has banned Youmin Li from entering the country. "Any entity considering evading our sanctions should take notice of this action today,” Pompeo said. 

The Chinese embassy in Washington has strongly criticized the measure adopted by the United States, once again emphasizing its opposition to "unilateral sanctions" and to the "so-called long-arm jurisdiction" over China and other countries ", invoking a pretext" national law ”.

"We urgently call on the United States - concludes the note from the Beijing representation in the US - to immediately correct this wrong way of acting and to respect the other parties".

US-Iranian tensions were triggered by US President Donald Trump’s 2018 decision to pull out of the Joint Comprehensive Plan of Action (JCPOA) ​​agreed by his predecessor, Barack Obama, which was followed by the toughest sanctions in history against Iran. Washington, which has its sight sets on the oil exports of the Islamic Republic has strengthened the military presence in the area. But the sanctions are primarily affecting the population.

Tensions in the Middle East, sharpened these days by the seizure of a British-flagged oil tanker by Iran, and the trade war between Washington and Beijing have led to a further increase in oil prices. The fear of markets and investors is a possible cut in supplies. The Brent Oil Future (LCOc1) grew 4% to $ 63.30 a barrel. The international benchmark increased by 1%, while the West Texas Intermediate (WTI) remained unchanged at $ 56.22 a barrel.