The latest US sanctions on Iranian petroleum exports have struck a major blow to the Chinese state oil giant Sinopec by targeting a terminal that handles about one-fifth of its crude imports, according to industry sources and analysts.

The measures, announced on Thursday, add fresh strain to US-China relations ahead of planned talks between Presidents Donald Trump and Xi Jinping later this month. They come shortly after Beijing moved to tighten controls on rare earth exports, underscoring the deepening trade and geopolitical rift between the two powers.

The US Treasury included Rizhao Shihua Crude Oil Terminal Co Ltd among several entities sanctioned for facilitating Iranian oil shipments. The company, based in the port city of Lanshan in Shandong province, was designated to receive Iranian crude delivered by already sanctioned vessels.

Rizhao Shihua operates three berths capable of handling very large crude carriers (VLCCs). The terminal is jointly owned—50 per cent by Sinopec Kantons Holding, a logistics arm of Sinopec, and 50 per cent by Shandong Port Group’s Rizhao Port, backed by local authorities.

According to data from tanker tracker Vortexa and industry officials, Sinopec handles most of the crude passing through the terminal. While Sinopec has avoided direct purchases of Iranian oil, the US move increases risks for its supply network.

The new sanctions bring to five the number of oil import terminals in Shandong province now under US restrictions—representing roughly half of the region’s VLCC handling capacity. Shandong, home to a cluster of independent refiners, remains a key destination for crude from Iran, Venezuela, and Russia.

Samuel Kong, senior analyst at energy consultancy FGE, said the impact of the new sanctions could be “larger than previous rounds.” He estimated that 10 to 20 per cent of oil imported through Rizhao originates from sanctioned sources.

“In the short term, we could see unloading disruptions around Rizhao,” he said, adding that ships carrying non-sanctioned cargoes may divert to other ports in Shandong.

Sinopec and its subsidiaries have yet to comment on the latest sanctions, while calls to Shandong Port Group and Rizhao Port went unanswered.