China Orders Refiners to Ignore US Sanctions on Five Iranian Oil Buyers

China's Ministry of Commerce invoked its 2021 Anti-Foreign Sanctions Law for the first time on May 2, ordering firms to disregard U.S. OFAC sanctions on five refiners including Hengli Petrochemical accused of processing Iranian crude. The rare legal defiance, reported through May 4, drove Brent crude past $120/barrel on May 3 before retreating to $114.16 above $111, with WTI near $101, signaling support for oil prices amid geopolitical tensions. The escalation risks banks via compliance uncertainty and precedes President Trump's Beijing visit, potentially tightening global supply as China continues discounted Iranian imports.