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US Sanctions Put China’s Iran Oil Buying Under Scrutiny · GNN Daily Breaking News

• 0:00
  Speaker 1: The United States is preparing a sweeping new round of
• 0:03
  Speaker 1: economic sanctions on Iran, and the move is already reverberating
• 0:07
  Speaker 1: through global energy markets, particularly in China, which has become
• 0:12
  Speaker 1: Iran's most important remaining oil customer. As Washington signals that
• 0:17
  Speaker 1: the upcoming measures will be the toughest yet, analysts say
• 0:20
  Speaker 1: Beijing's buying patterns could determine how much pressure Iran ultimately faces.
• 0:26
  Speaker 1: For years, China has been the backbone of Iran's oil economy,
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  Speaker 1: purchasing the vast majority of its crude exports through a
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  Speaker 1: network of intermediaries, reflag tankers and ship to ship transfers
• 0:39
  Speaker 1: designed to obscure origin. Even under previous sanctions, China continued
• 0:44
  Speaker 1: to import Iranian barrels at discounted rates, often labeled as
• 0:48
  Speaker 1: oil from Malaysia or Oman. But the new US package
• 0:53
  Speaker 1: is expected to include aggressive secondary sanctions, targeting not only
• 0:57
  Speaker 1: Iranian entities, but also foreign buyers, shippers, insurers, and banks
• 1:03
  Speaker 1: that facilitate the trade. Treasury officials have warned that any
• 1:07
  Speaker 1: company helping Iran move oil could be cut off from
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  Speaker 1: the dollar based financial system, a threat that carries significant
• 1:15
  Speaker 1: weight for Chinese refiners and trading houses. While Beijing has
• 1:19
  Speaker 1: publicly rejected US pressure, insisting it will protect its energy interests,
• 1:25
  Speaker 1: the risk of financial isolation has prompted some Chinese buyers
• 1:29
  Speaker 1: to slow purchases or re route shipments through more complex channels.
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  Speaker 1: Iran meanwhile, is bracing for impact. The country relies heavily
• 1:38
  Speaker 1: on oil revenue to stabilize its currency and fund government operations.
• 1:43
  Speaker 1: With the Strait of Hormas already disrupted by conflict and
• 1:47
  Speaker 1: tanker blacklisting, any reduction in Chinese demand could deepen Iran's
• 1:52
  Speaker 1: economic crisis. Tehran has accused Washington of economic terrorism, arguing
• 1:58
  Speaker 1: that sanctions harm civilians and violate international norms. Energy analysts
• 2:03
  Speaker 1: say China faces a delicate balancing act. On one hand,
• 2:08
  Speaker 1: Iranian crude is cheap and helps feed China's massive refining sector.
• 2:13
  Speaker 1: On the other, escalating US pressure raises the cost of
• 2:17
  Speaker 1: doing business, especially for state linked firms that depend on
• 2:21
  Speaker 1: global financing. Some refiners have begun shifting toward Russian and
• 2:25
  Speaker 1: Brazilian barrels, while others continue buying Iranian oil but rely
• 2:31
  Speaker 1: on shadow fleets and opaque payment systems to avoid detection.
• 2:35
  Speaker 1: The stakes extend beyond China and Iran. Global oil markets
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  Speaker 1: remain volatile, with supply routes disrupted and prices sensitive to
• 2:44
  Speaker 1: geopolitical shocks. If Chinese imports of Iranian crude fall sharply,
• 2:50
  Speaker 1: it could tighten global supply and push prices higher. If
• 2:54
  Speaker 1: China defies US pressure and maintains or increases purchases, Washington
• 2:59
  Speaker 1: says campaign may struggle to achieve its intended effect. As
• 3:04
  Speaker 1: the US prepares to announce its new measures, all eyes
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  Speaker 1: are on Beijing. China's next move will help determine whether
• 3:11
  Speaker 1: Oran can withstand another round of economic isolation, or whether
• 3:16
  Speaker 1: Washington's pressure campaign will reshape the global energy landscape once
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  Speaker 1: again