U.S. Lifts Sanctions on Unit of China’s Biggest Shipping Company

The U.S. lifted sanctions against a unit of China’s biggest shipping company that was accused of hauling Iranian crude in violation of American restrictions.

According to a notice posted on the Treasury Department’s website Friday in Washington, sanctions were removed. In September, restrictions were placed on the Dalian units of China COSCO Shipping Corp., sending freight rates soaring as traders canceled charters linked to the parent company. Four other Chinese entities were also sanctioned.

Tanker stocks DHT Holdings Inc, Nordic American Tankers Ltd., Frontline Ltd. and Teekay Corp. fell following Friday’s announcement, all dropping by more than 4%.

“With ...