New Delhi, May 7 -- China has directed domestic companies to disregard US sanctions targeting Iranian oil imports, escalating tensions with Washington and setting up a direct challenge to the Trump administration's pressure campaign against Tehran.

China's Commerce Ministry, according to Fox News, issued a directive on Sunday invoking a 2021 "blocking statute" that bars Chinese firms from complying with foreign sanctions Beijing considers illegitimate. The order reportedly applies to several Chinese refiners accused by the United States of purchasing Iranian crude, including independent "teapot" refineries.

The development comes as the Trump administration intensifies sanctions aimed at cutting off a major source of Iranian revenue.

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