ERBIL, Kurdistan Region of Iraq - The US on Friday sanctioned an independent Chinese oil refinery and around 40 entities linked with shipping companies accused of being “critical lifelines for Iran’s oil exports,” as Washington continues its economic pressure on Tehran.

“The Department of the Treasury imposed sanctions today on a major, independent Chinese refinery and nearly 40 other targets – vessels and their respective owners or managers – that serve as critical lifelines for Iran’s oil exports,” read a statement from State Department Spokesperson Tommy Pigott.

Among those sanctioned is Hengli Petrochemical Refinery in Dalian, which the Treasury Department described one of Iran’s largest crude oil customers “having purchased billions of dollars worth of Iranian petroleum.”

As a consequence of the sanctions, any entities owned 51 percent or more by those targeted are frozen in the US and US citizens are prohibited from working with them.

The sanctions come as the US increases economic pressure on Iran, including by imposing a naval blockade on Iranian ships and ports, in response to Tehran limiting access to the Strait of Hormuz, a key waterway responsible for roughly 20 percent of the world's oil shipments.

Iran initially closed the strait as a means in its war against the US and Israel, sharply driving up global oil prices.

According to US President Donald Trump, the blockade on Iranian ports costs Tehran $500 million daily.

“These measures underscore the US commitment to disrupting Iran’s ability to fund terrorism, support proxy forces, and threaten regional stability,” Pigott added.

Iran-aligned militias in the region have launched hundreds of missiles and drones on US targets since the US and Israel launched their attack on Iran in late February.

Last week, the Treasury announced sanctions targeting seven pro-Iran Iraqi militia commanders “responsible for planning, directing, and executing attacks” against US personnel and interests in the country.

Secretary of the Treasury Scott Bessent warned that any person or vessel facilitating Iran through “covert trade and finance,” risks being sanctioned by the US.