The meeting is about to take place, but before that, the US has banned Chinese companies.

The US has imposed sanctions on a major Chinese oil refinery and about 40 shipping companies and tankers. It is alleged that they were carrying Iranian oil. According to an Associated Press report, the move is the latest attempt by the Trump administration to curb oil exports, Iran’s main source of income.

The sanctions come just weeks before President Donald Trump and Chinese President Xi Jinping meet in China. Apart from this, America has also imposed a physical blockade on the Strait of Hormuz located in the Persian Gulf. This waterway is very important for the world’s energy supply.

Also Read: Foreign Minister of Iran will go to Pakistan, will there be talks with America?

Restrictions imposed on which refinery?

China’s Hengli Petrochemical Company’s Dalian port facility is also on the sanctions list. It is one of the largest independent refineries in China. Its daily oil processing capacity is around 4 lakh barrels.

The US Treasury Department alleges that Hengli purchased Iranian crude oil from 2023, generating hundreds of millions of dollars for the Iranian military. The Treasury Department said the action was taken to stop funding Iran’s military.

Tensions between Iran and the US

The move comes amid ongoing tensions between Iran and the US. The US is trying to completely block Iran’s oil exports. A blockade on the Strait of Hormuz could affect global oil supplies.

Also Read: What is the use of such a century… Sai Sudarshan became the villain of Gujarat Titans’ defeat

The Trump administration says cutting Iran’s revenues will curb its nuclear program and support for terrorism. China, a major buyer of Iranian oil, disagrees with the US on the matter. Relations between the two countries are already complicated. A meeting between Trump and Xi Jinping is also being discussed, but the Iran issue could make it more difficult.