US Sanctions Fail to Deter China's Iranian Oil Imports

China's oil imports from Iran have remained largely unaffected by US sanctions, according to data from industry provider Kpler. In fact, China has received about 1.2 million barrels of Iranian oil per day so far this year, which is only slightly less than the same period last year.

Senior analyst Muyu Xu noted that large quantities of oil are now sitting on ships and in storage tanks near the Malacca Strait and South China Sea. 'Up-to-date volumes are difficult to measure because ships have become increasingly skilled at evading detection,' Xu said.

US sanctions, however, have made it challenging for state-owned oil firms in China to buy Iranian energy. Instead, privately owned refiners - known as 'teapot refiners' - have been purchasing Iranian oil at discounted prices and converting it into gas and diesel for the local market.

The US administration's efforts to cut off Iran's economic lifelines may risk a clash with Beijing, which has strongly condemned Washington's declaration of an economic war against Tehran. Chinese Foreign Ministry spokesperson Lin Jian stated that 'maximum pressure' and 'economic isolation' would only intensify contradictions and conflicts, causing risks to spill over.