China Keeps Iranian Oil Flowing Despite New US Sanctions

Despite new US sanctions targeting more than 60 brokers and firms, including over a dozen in China, Iran's oil continues to flow into China. According to Treasury Secretary Scott Bessent, Washington aims to cut off every remaining financial channel supporting Iran.

However, actual volumes could be higher due to the increasing adeptness of ships carrying Iranian crude at avoiding detection. The new measures target smaller Chinese firms, while leaving out major banks and state financial institutions unscathed.

Bessent cited 'quiet diplomacy' as the reason for sparing China's big banks, while hinting that an unnamed international institution will still face penalties.

Former Treasury official Daniel Tannebaum noted that Washington consistently avoids directly confronting China due to its leverage. This leverage is tied partly to timing, with Chinese President Xi Jinping set to meet Trump in the US next month as both sides seek to stabilize relations.