Chinese refineries prepare for potential US Iran sanctions: sources in General Energy News 06/05/2026 More Chinese independent oil refineries are preparing for potential US sanctions over their involvement in Iranian oil-related business, setting up new entities and registering separate bank accounts to get around any measures that are imposed, according to industry sources. The move comes after the US sanctioned China’s second-largest independent refinery Hengli Petrochemical (Dalian) Refinery, and Qingdao Haiye Oil Terminals. “Independent refineries, no matter big or small, and oil logistic facilities, which handled Iranian oil, are at higher risk than ever amid the Iran conflict and the coming China-US summit,” a Shandong-based refining source said. While the Chinese government issued a ban order on May 2 stipulating that US sanctions on Chinese refineries — the primary purchasers and dealers of Iranian crude — should not be recognized, enforced or complied with, the industry is anticipating a potential financial clampdown from Washington, the sources said, which include Shandong-based refiners, traders and port officials. The US Treasury on April 28 issued an alert warning banks of sanctions risk in doing business with independent refineries in China, particularly in Shandong Province, which might be importing and refining Iranian oil. Any Chinese bank with international exposure will likely avoid transactions related to Iran, even with the Chinese government’s ban, the sources said. “To continue with ‘legitimate and necessary’ operation, banks are allowed to apply for an exemption from the ban,” the Shandong-based refiner said, citing the “Measures for Blocking the Unjustified Extraterritorial Application of Foreign Laws and Measures” that the Chinese government issued in 2021. “Iranian oil transactions usually go through local small banks that are isolated from the US dollar systems, settling in Chinese yuan, but the charges are high,” a second Shandong-based