US Sanctions Threaten Ties Between China and Iran Over Oil Exports
The US has imposed new sanctions on Iran's oil exports, warning other countries to cease doing business with Tehran or risk being forced out of the dollar-based financial system.
Treasury Secretary Scott Bessent emphasized that no one is above the reach of US sanctions, including Chinese banks, which have been a major buyer of Iranian oil.
The latest data shows that Chinese imports of Iranian crude have dropped dramatically since the US renewed its blockade of Iran's ports in July. In February, China imported 1.57m barrels per day, but by August, this figure had fallen to 534,000 barrels per day.
Chinese independent refiners, known as 'teapot' refineries, have been the main buyers of Iranian oil, taking advantage of a steep discount on mainstream barrels. However, US sanctions have disrupted these flows, and Chinese state refiners have largely shunned Iranian oil since 2019 due to concerns about being cut off from the US dollar-based system.