China's Role in Iran's Oil Revenue Chain: A Key Target for US Pressure
The US and Israel have been trying to pressure Iran into agreeing to certain conditions through military operations, but so far, they haven't achieved their strategic objectives. The three lines of effort to address this issue are supply-side interdiction, building oil pipelines around Iranian control of the Strait of Hormuz, and demand-side pressure on what still gets out.
The third line of effort, addressed in Operation Economic Outcast, targets China's commercial incentives to foreclose Iran's principal remaining oil-revenue channel. Beijing's May 2026 blocking order insulated its teapot refiners from US designations, but the instruments that remain work above and around the refineries.
The article notes that Chinese purchases of Iranian crude have been substantial, with China purchasing approximately 80 to 90 percent of Iranian exports before the latest disruptions. Iran generated over $5 billion in revenue available to the IRGC through dark fleet exports after the Islamabad Memorandum was signed.