Iran Bypasses Sanctions with Barter Scheme

Iran has found a way to bypass US sanctions on oil sales by using a barter-like trading scheme with China. According to five sources, Iran exchanges its oil for credits that can be used to pay for billions of dollars' worth of goods from China, including medicines, vehicles, and military equipment.

The scheme, which has been in use since at least 2021, helps both countries maintain access to each other's resources. China takes over 80% of Iran's oil shipments, while Iran purchases goods and services from China without paying directly through the international banking system.

US pressure on companies doing business with Iran has increased in recent years, but the sanctions have yet to be imposed severely enough to impact the global economy. The US Treasury Secretary warned countries to end their ties with Iran or risk being excluded from the US dollar-based financial system last August.