The United States has announced a new round of sanctions against 12 individuals and companies accused of helping Iran bypass international restrictions to sell and ship oil to China. This latest economic measure, announced on Monday, May 12, 2026, arrives just days before US President Donald Trump is scheduled to meet with Chinese President Xi Jinping in Beijing.
According to the US Treasury Department, Iran’s Islamic Revolutionary Guard Corps (IRGC) has been utilizing shell companies in lenient financial jurisdictions to disguise its involvement in the oil trade and secretly funnel revenue back to the regime.
The newly sanctioned targets include:
Three individuals based in Iran.
Nine companies operating out of Hong Kong and the United Arab Emirates.
Under these sanctions, all US-based assets belonging to these entities will be frozen, and US citizens and companies are strictly prohibited from conducting any business with them.
This action is a key component of Washington’s broader strategy to economically suffocate Tehran’s government and the IRGC, cutting off resources that fund military activities.
“As Iran’s military desperately tries to regroup, Economic Fury will continue to deprive the regime of funding for its weapons programs, terrorist proxies, and nuclear ambitions,” stated US Treasury Secretary Scott Bessent.
The ongoing conflict has severely disrupted global energy markets, particularly as Tehran has effectively blocked the Strait of Hormuz—a critical transit route for approximately 20% of the world’s oil and gas. While Washington briefly eased some oil sanctions in March to help stabilize global supply shortages, it has since reinstated and tightened those restrictions.
Because China remains one of Iran’s largest trading partners and a major importer of its oil, these sanctions set the stage for complex diplomatic talks. During his upcoming visit to Beijing, President Trump is expected to press President Xi for greater cooperation in pressuring Tehran, alongside a full agenda of trade disputes.
This move follows closely on the heels of the State Department sanctioning three Chinese satellite companies for supporting Iran’s military operations, signaling a growing crackdown on foreign entities aiding Tehran.
