U.S. Sanctions Hit Hengli Petrochemical Amidst Iranian Oil Allegations

Shares of Hengli Petrochemical experienced a significant decline, dropping by as much as 10% on Monday. This follows the announcement of U.S. sanctions against the Chinese refiner for allegedly buying oil from Iran.

The U.S. Treasury Department identified the firm as a major customer of Iranian crude and petroleum products, aiming to block assets and prevent American business partnerships. However, Hengli Petrochemical has refuted these claims in a recent statement.

Although the U.S. sanctions have impacted numerous independent refiners, experts indicate that the overall influence on such companies is often mitigated by their minimal reliance on the U.S. financial system.

(With inputs from agencies.)