US Expanded Iran Sanctions and China's Oil Trade
The US has expanded its sanctions to sever Iran's economic ties. Commercial relations with China, its largest buyer, are at risk.
The US announced it is expanding sanctions targeting Iran's economic lifeline, with Treasury Secretary Scott Bessent emphasizing that other countries must either cut commercial ties with Iran or face the risk of being cut off from the dollar-based financial system.
Scope of Sanctions
The US administration announced the implementation of new sanctions aimed at cutting off Iran's economic resources. Treasury Secretary Scott Bessent stated that countries worldwide must end their commercial ties with Iran.
China's Position
China has long maintained its position as the largest buyer of Iranian oil. Although a port blockade renewed in mid-July and new sanctions have negatively affected this trade flow, economic ties between the parties continue.
Role of Independent Refineries
While major state refineries in China have avoided Iranian oil since 2019, smaller independent refineries known as 'teapots' continue to purchase cheap crude oil.
International Reactions
The Chinese Foreign Ministry stated that they reject unilateral sanctions and will take necessary steps to protect their interests. Meanwhile, Iranian Economy Minister Ali Madanizadeh stated that China and Russia do not accept the US measures.