economy
China is the biggest buyer of Iran’s oil. Could US sanctions threaten those ties?
The US has put the world on notice to cease doing business with Iran, but experts say Washington is wary China could retaliate against any sanctions
TL;DR
- The US has expanded sanctions on Iran, aiming to cut off its economic lifeline.
- Treasury Secretary Scott Bessent warned other countries to cease business with Iran or risk being excluded from the dollar-based financial system.
- China is the largest buyer of Iranian oil, but imports have significantly decreased since July due to renewed US port blockades.
- Independent Chinese refiners ('teapots') have been the primary buyers of Iranian crude, attracted by discounts.
- The US is cautious about imposing sanctions on Chinese banks due to potential retaliation, especially before upcoming talks between President Trump and Xi Jinping.
- Chinese independent refiners have historically rebranded Iranian oil as Malaysian or Indonesian to bypass sanctions.
- Past US sanctions have had a disruptive but limited effect on overall Iranian oil flows to China.
- China's foreign ministry stated that sanctions and pressure tactics are unhelpful and that Beijing will protect its interests.
- Iran's economy minister stated that China and Russia have not accepted the US measures and predicted resistance from other countries.