Public opinion is sharply divided on the effectiveness and consequences of US sanctions on Iran's oil trade, particularly regarding China's response. Many express skepticism and highlight that despite US sanctions, China is likely to maintain its trade with Iran, referencing past resilience and strategic partnerships. Criticism is widespread regarding the US administration's foreign policy, labeled as ineffective or a symbolic gesture, with concerns about escalating geopolitical tensions and potential economic repercussions for global markets.

US Government

Iran

China

Well ofc. U.S sanctions stopped countries like japan or germany from buying iranian oil but it never stopped china so they can buy iranian oil for a discount. The u.s isn't willing to sanction the chinese central bank for continuing the finance of Iranian oil because that would cause the current global economic system to collapse and who knows what after that.

 This is why the sanctions on russia will be a huge loss for both europe who can no longer buy cheap russian commodities and russia who's commodities will be traded at a discount and will benefit china who can buy russian commodities at a discount and america who can sell commodities at a mark up to europe.

tobehone

Article

&gt;SINGAPORE/LONDON, March 1 (Reuters) - China's purchases of Iranian oil have risen to record levels in recent months, exceeding a 2017 peak when the trade was not subject to U.S. sanctions, tanker tracking data showed.

&gt;The ramping up of the purchases by the world's top oil importer comes amid talks between Tehran and world powers to revive a 2015 nuclear deal that will lift U.S. sanctions on Iranian oil exports. The talks have intensified in recent weeks.

&gt;A return of Iranian oil will ease tight global supplies and cool crude prices that have touched $100 a barrel following Russia's invasion of Ukraine.

&gt;Chinese imports exceeded 700,000 barrels per day (bpd) for January, according to estimates of three tanker trackers, surpassing the 623,000 bpd peak recorded by Chinese customs in 2017 before former U.S. President Donald Trump reimposed sanctions in 2018 on Iranian oil exports.

&gt;One tracker estimated imports amounted to 780,000 bpd in November-December on average.

&gt;U.S. President Joe Biden's administration has so far chosen not to enforce the sanctions against Chinese individuals and companies amid the negotiations on reviving the 2015 deal.

&gt;Record Chinese purchases of Iranian oil would mean less supply will be available to Tehran's previous buyers like Indian and European refiners should the sanctions be removed and the Islamic republic be allowed to resume oil exports, traders said.

&gt;It would also mean that cheaper Iranian oil will continue to crowd out rival supplies from Brazil and West Africa, they said.

&gt;When asked for a comment by Reuters, China's foreign ministry declined to go into details but reiterated that Beijing opposes Washington's long-arm jurisdiction and urges Washington to remove unilateral sanctions.

&gt;Iran's oil ministry did not respond to a request for comment.

&gt;A U.S. State Department spokesperson said Washington is aware of China's Iranian oil purchases and has broached the subject with Beijing.

&gt;“China is an important trading partner for Iran, so, of course, our discussions with China on how best to get a mutual return to compliance with the JCPOA include discussions of sanctions enforcement," said the spokesperson, referring to the 2015 nuclear deal formally known as the Joint Comprehensive Plan of Action.

DEMAND FROM TEAPOTS

&gt;At the forefront of China's buying are its independent refiners, or "teapots", who, traders said, are being enticed by the discounted prices, especially as their domestic refining margins got pinched under tight regulatory scrutiny.

&gt;"We're seeing more plants taking Iranian oil, because they are cheaper," a China-based executive involved in the business told Reuters, referring to the independent refiners.

&gt;Traders said January Iranian cargoes were transacted $5 a barrel below benchmark Brent . Those prices were steady versus late 2021 but more attractive against competing supply from Brazil that was priced at $7 premium over Brent, they said.

&gt;Consulting firm Petro-Logistics, which tracks oil flows, said Iran's crude exports surged in December to over 1 million bpd, the highest level in almost three years.

&gt;"Iran's oil exports are mostly going to China, often through convoluted routes and transshipments, with small volumes going to Syria each month," said CEO Daniel Gerber.

&gt;Petro-Logistics sees total Iranian oil exports at close to 800,000 bpd in January and 700,000 bpd in February. But OilX, another data analytics firm, pegged Iranian exports at more than 1 million bpd for both January and February.

&gt;Chinese customs, which reported its first official import of Iranian oil in December, is due to release January and February data in March.

&gt;If the 2015 nuclear deal is revived, Iran is expected to divert sales away from the Chinese independent refiners but the Islamic republic is unlikely to turn off the tap to these customers, source of more than $20 billion in revenue over the past two years.

&gt;"Iran may not have the full confidence how long the new deal could last. Chinese teapots have proven an essential outlet during the worst times and Iran would want to keep that channel open," said the China-based oil sector executive.

Peugeot905

[deleted]

China knows not to trust Russia/Putin. Best to diversify and have a nominal % from Russia. Iran can produce enough with saudi to drop Russia all together. The US will have go open up those flood gates. Big oil will limit production to keep costs high. The shutdown showed companies you can limit supply and still make money causing inflation through limited flow of products and supply chain. When companies moved to on demand supplies vice warehouses of supplies/inventory they got caught in the production slowdown. Big oil is no different.

DiBalls

&gt; US has lost leverage through tariff war
Still, even aggressive enforcement would not be enough to halt Iran's oil trade entirely. According to Seigle, the US now faces a deeper challenge: it has lost leverage over China, the primary destination for Iranian crude. 

Yup, What's the USA gonna do? Increase the tariffs from 124% to 400%? Decouple from Vietnam to Antarctica?

He stupidly prefired all of the effective weapons he had to pressure China with and now his only option is to actually relax the trade war and look weak to get concessions out of China.

TF_dia

Sometimes I wonder what China’s goal is with things like this. I can get their love if spheres of influence but…

Why do they seem okay with nuclear proliferation? Is it because they already fucked up with North Korea and its too late in their eyes? Or do they just not give a shit.

DependentAd235

pc0999

Careless-Pin-2852

China and India have stopped trading in Russian oil as US sanctions have caused a sharp rise in tariffs for tanker freight.

**Source:** [Reuters](https://www.reuters.com/markets/commodities/russia-oil-trade-china-india-stalls-sanctions-drive-up-shipping-costs-2025-01-28/)

**Details:** According to traders and shipping companies, the trade in Russian oil that was loaded in March has stopped in Asia as a large price gap between buyers and sellers has emerged in China. This happened after the cost of freight for tankers, which were not affected by US sanctions before, rose sharply.

On 10 January, the US imposed new sanctions on the Russian oil supply chain, which led to a sharp rise in tanker freight rates, whereas buyers and ports in China and India avoided sanctioned vessels.

**Quote from Reuters**: "​​Offers for March Russian ESPO Blend crude exported from the Pacific port of Kozmino jumped to premiums of $3-$5 a barrel to ICE Brent on a delivered ex-ship basis (DES) to China after freight rates for an Aframax tanker on the route surged by several million dollars, three traders familiar with the grade said."

**More details:** Prior to the sanctions, constant winter demand and stronger prices for competing Iranian oil had pushed spot premiums for ESPO Blend to China to almost US$2 per barrel, the highest since Russia's full-scale war against Ukraine, which had triggered discounts of up to US$6.

The CFO of India's Bharat Petroleum Corp Ltd told Reuters last week that the company had not received any new offers for March deliveries, as was usual. The company expects that the number of cargoes offered for March will decrease compared to January and December.

Last year, India's imports of Russian crude oil were 36%, while China accounted for almost a fifth of the imports.

According to analyst firm Kpler, the latest sanctions target tankers that carry about 42% of Russia's seaborne oil exports, primarily to China, although sanctioned tankers are gradually unloading oil in China and India during the sanctions exemption period.

Indian oil secretary Pankaj Jain told reporters on 24 January that the United States had explained to India that tankers loaded with Russian oil must unload by 27 February in accordance with the sanctions. He added that payments for the oil on board the sanctioned vessels must be made by 12 March.

**Background:**

* Russian oil companies have suffered a new blow in the Indian market, which, after the outbreak of the full-scale war in Ukraine, has been significantly increasing its purchases of barrels from Russia and has become the second largest importer of barrels to Russia after China.
* The cost of transporting Russian ESPO oil to China has risen sharply, reaching almost five times the level before the latest US sanctions against Russia.

dat_9600gt_user

Sanctions work.

That’s why Iran lost its ability to support the axis of resistance which eventually fell.

That’s why the Russian economy is in shambles.

That's why countries adhere to them.

I do hope CCP gets sanctioned to hell as well, for the sake of Uyghurs, Tibet, Taiwan, Tiananmen, and the democratic future of the world at large.

mavihuber

Where have I seen this before.... [AH YES](https://m.economictimes.com/industry/energy/oil-gas/india-stops-taking-russian-oil-delivered-on-sovcomflot-tankers/articleshow/108704791.CMS)!! This happened last year. I'm sure they'll find new tankers by April.

Wolfsangel-Dragon

i hate trump with all my heart, i just hold a bit of of hope that his treasury secretary (scott bessent) will just go all out on sanctions and actually enforce them

neonpurplestar

if oil prices rebound though, I can see Trump reversing the sanctions because he will sell it as reducing inflation

runsongas

Seems a good thing.. does it matter credit?  

Ultimately proof is in the TBD results.. we’ll see if real actions on purchasing end &amp; policing the ships carrying.

NutsyFlamingo

Not an European but I’ve been following these news closely

It seems that the West has begun enforcing sanctions on the Russian shadow fleet since the Russians lost any option to reciprocate in the Mediterranean after the Syrian offensive

Chinese and Indian companies have been insuring these ships since the war begun but that can’t work if they can’t guarantee their safety from the Swedish and Finnish navies in the Baltic Sea. This does however make a war in that region much more likely in the coming years. 

What an idiotic war, what was Putin thinking

GrandPsychology813

Does this also have an effect on russian gas?

SZEfdf21

Also if he obsesses over this made in America movement they will start losing a lot of that tariff power as nobody trades wirh them..

AdAdministrative4388

TrueClue9740

MrHyperion_

If you are wondering how they are sanctioning tankers:

The U.S. government has implemented sanctions on tankers carrying Russian oil as part of broader efforts to pressure Russia, particularly in response to its actions in Ukraine. These sanctions are designed to limit Russia's ability to export oil, thereby reducing its revenue. Here are some of the key methods the U.S. government uses to sanction these tankers:

1. **Designation of Vessels and Entities**: The U.S. Treasury's Office of Foreign Assets Control (OFAC) can designate specific tankers, shipping companies, and other entities involved in the transportation of Russian oil. Once designated, these entities are added to the Specially Designated Nationals (SDN) list, which prohibits U.S. persons and entities from conducting business with them and freezes any assets they have under U.S. jurisdiction.
2. **Secondary Sanctions**: The U.S. can impose secondary sanctions on non-U.S. entities that engage in significant transactions with designated Russian entities or that facilitate the transport of Russian oil. This means that even if a tanker or shipping company is not based in the U.S., it can still face sanctions if it deals with Russian oil.
3. **Price Cap Mechanism**: The U.S., along with its G7 partners and the European Union, has implemented a price cap on Russian oil. This mechanism allows third countries to purchase Russian oil only if it is sold at or below a specified price cap. Tankers that transport Russian oil sold above this price cap can be sanctioned, and service providers (such as insurers and financiers) are prohibited from facilitating these transactions.
4. **Denial of Port Access**: The U.S. can work with allied nations to deny port access to tankers that are known to be carrying Russian oil in violation of sanctions. This can include refusing entry to ports, denying docking privileges, and restricting the provision of services like refueling and maintenance.
5. **Financial Restrictions**: The U.S. can impose financial restrictions on banks and financial institutions that facilitate transactions for tankers carrying Russian oil. This includes cutting off access to the U.S. financial system and prohibiting the use of U.S. dollars in these transactions.
6. **Information Sharing and Coordination**: The U.S. collaborates with international partners to share intelligence and coordinate enforcement actions. This can involve tracking the movements of tankers, identifying those that are evading sanctions, and taking collective action to enforce compliance.

These measures are part of a comprehensive strategy to limit Russia's oil revenues and to discourage the global transport of Russian oil in violation of international sanctions. The effectiveness of these sanctions often depends on the level of international cooperation and the ability to monitor and enforce compliance.

Which makes me wonder that since China has no lack of shipbuilding capacity, couldn't they just build new tankers owned by some shell company? Or even "retrofit" existing ones exclusively for the Russian oil trade. Eventually, not in the short term of course.

PandaCheese2016

cksully

heatrealist

Very very rare Trump W

Still not convinced he’ll “solve” the Ukraine v Russia war. We’ll see!

zarafff69

Ooooh 🥭 is extra pissed today that China said US was the one that reached out for a call on tariffs.

PrestigiousFlower714

Next is India walking away from a deal that trump has been touting as the first major deal. India has been buying oil from Russia and Iran over the years.

ThatsAllFolksAgain

Words, words, words. Market is going to move in the opposite direction you buy in. Welcome to the casino.

AlohaTrader

Man if only there was some kind of deal that was already in place we wouldn't be in this mess

Middle_Scratch4129

BrilliantDishevelled

Yeah it's very funny. 

**Anyone who imports oil from Iran will not be able to do any business with us!**

China (imports 95%): *okay donald*

India (imports 5%): *for real?*

Apple (moved iPhone production to India): *GOD DAMNIT*

FrogsEverywhere

So Iran is part of OPEC. Everyone buys oil from OPEC. So no one buying OPEC can do business with the US?

ElectricPenguin6712

Wait, isn't he working on a nuke deal with Iran? I swear, our Pres gets more bipolar every day.

CaptainZ42062

The Self Proclaimed Great Negotiator!  This is exhausting.

mgidaho

Not sure what these "Maximum Pressure Sanctions" do that China's 125% tariff on US goods doesn't already accomplish. Trade between China and the US is grinding to a halt already so what is left exactly to sanction?

macvelli

No chance of a deal after this. Sanctioning China’s oil supply is a major escalation — markets are underestimating the fallout.

Strange-Leg-1061

Trump keeps pushing the boundaries of what will cause China to fight back more aggressively. This is what you get from a moronic level understanding of history and Chinese present culture.

Kuhio2403

redbackground1

Really Bad Actor in the White House.  Not a smart guy.  Very low IQ.  Move to impeach, NOW!  Terrible so called businessman is crushing American’s savings and dreams.  SAVE America!!!

FuturePercentage757

Why does he have to prove he has the smallest brain every day.

ctguy54

Once again, he’s setting himself up for a GUARANTEED humiliation when he has to inevitably walk this back. He’s talking about full trade embargoes with China and India. 

It will not happen, and in announcing it, he’s once again proving that he’s a moron and that America is weak to follow through on a threat Trump made in her name.

Worried-Rub-7747

Bullish. S&amp;P +3% tomorrow on this news.

LeDucky

My god.... China will suck up wayyyy more hurt than the U.S can tolerate. Poeple don't get their Starbucks in the morning they are ready to overthrow the government, in the U.S..

DARKKRAKEN

I hope China dumps all of those US Treasury Bonds at one. Notch up the chaos meter and make Diaper Don shit himself.

sniffstink1

He does everything possible to poison green days

RCA2CE

He thinks he's artfully wielding the carrot and the stick (insofar as he's able to think at all).

TarquinusSuperbus000

Wow, how many gas stations owned by immigrants are going to close? How long before we run out of gas and oil, diesel? How high is the price for these commodities going to get? A lot of the world runs on fossil fuels. The whole world just got fu*cked without a kiss and a thank you! Fasten your seat belts because Trump just initiated the apocalypse.

Big-Cash-8148

It’s like the bully that keeps poking the bear trying to get a reaction, but the bear is just ignoring them.

Advanced-Royal8967

He's not just doing it because of China. He's doing it for Musk. He thinks he can force people to buy Tesla. For those of you who are able to buy electric cars, there are other manufacturers. We need to hit Musk and Tesla with more protests and bury him so deep that Tesla will never survive.

market is running up on pure hope and delusions. running on pure air. it's crazy that SPY is at 558.

RetrieverDoggo

Sounds like the perfect way to blame China for failed trade talks. 

"We had a great deal in the works but China is buying Iranian oil so there is no deal and it's their fault."

RunJumpJump

There isn't a China deal coming, there never was a China deal coming.  China is not interested in discussions at this point.  They know Trump isn't a serious person and will not engage in discussions while the current tariffs are in place.

Instead they will continue to shore up their own international trading relations.  When this madness ends we will find that China has managed to completely wall us in.

Big_Wave9732

China only follows UN sanctions. Not the sanctions imposed unilaterally by the US.

Steamdecker

MossIsking

China had a contract with Iran for years to purchase oil . I may be incorrect

FormulaJuann

Automatic-Unit-8307

Why is our President like a character from The Office?

“I DECLARE NO MORE IRANIAN OIL!”

wholewheatscythe

“Hello Xi? Yeah, Donald. I’m going to shoot myself in the other foot now.”

Dense_Boss_7486

China has survived for 5000 years.  I have a feeling they'll survive this little Trumpian blip in history.

PhilosopherScary3358

Trump is the coward yelling from the corner he’s forced himself into. What a raging idiot

Overall_Curve6725

He is going to lose, China won't lose face.Also they don't have to worry about elections.

ketoatl

I'm sure there is at least one politician in Beijing who just can't get over how easy this is.

tatt2tim

Trump os working on setting up.the next pump and dump cycle...  or really dump and pump.

Infuryous

Or maybe, just hear me out, we start selling our oil to China? Chevron and Exxon would be pretty happy to do so with their current situation. Black listing one nation and taking their exported goods actually doesn’t sound half bad… can’t say that I believe this is his plan as I’m not sure he actually had one but who knows?

sandman2986

Look bot, you would sell out the country for your short sighted tendies!

karmapleaseclick

Or maybe because IRAN is the funding source for terrorist worldwide! Grow up and learn to make money up or down!

mountednoble99

But it’s all Biden’s fault. Trump has only been president since late January

Outrageous-Ranger318

China still not calling hey. No allies left to care. Enjoy your empty shops and depression America, it's what you voted for.

Nottheadviceyaafter

Imacatdoincatstuff

Iran's biggest oil purchasers are China and India. Good luck keeping the US moving if you do that.

No_Mercy_4_Potatoes

Until he reverses course tomorrow. Can't trust anything he says or does to last more than 24 hours

opticzar

So if I refuel my diesel car in Teheran will I be sanctioned? I can't buy Mac or hotdog in US after this treasonous episode? Sounds scary af

excubitor15379

Is Trump trying to goad China into an actual war knowing that US will win and then China will have to give up much of its power and assets ??

NotTrumpsAlt

It is so pain we have a daydreamer, or dementia patient need to get medication immediately

kevin091939

Based on the first 100 days I’m fully expecting a nuclear standoff with the rest of the world by Christmas.

MoneySyrup5904

&gt; Trump isn’t bluffin



Same kind of "STOP NOW" as with the Hamas?

HighTechPipefitter

He did say, last week, that he is president of the US but he runs the world.

AdventureThink

Titanww8

So it was only ever really Chart of the Deal.

JPMorgansStache

RegularHighway4735

Trump warns other nations not to buy Iranian oil then gets 2.2 billion from the UAE in the same day.. Nothing to see here folks.

NinjaBilly55

So this is speculation not actually a fact..I mean India buys a shit ton of oil from Iran...does that mean India's trade is done for too

SidTrippish

Due_Outside_1459

Someone left their baby at the Whitehouse and made it president. Fking hell, and this Isa supposed tough guy?

jazznessa

im so tired, please can we get a new leader ffs, i know being woke is bad but can people at least be aware of how ridiculous and illogical and horrible this man is?

Healthyred555

Trump does his all to make US seem totally unreliable trade partner. 


This trade war shit will bite back US arse. But what they say. Ef around and find out.

Opposite-Chemistry-0

Apparently purchases of oil from Canada by China are up some 900%?  There is an article floating around somewhere on it yesterday - I believe on one of the Canadian subs.  I might have the value incorrect - it may have been 700% or 800%.

I don't know the baseline.  So the increase may not translate to a significant volume.  But Canada has the oil to spare and China needs it for industry even with how rapidly it is pushing renewals.  

So this Trumpian threat may yet be another that backfires in a spectacular fashion.

lifeisahighway2023

Piper6728

The deal that they weren't working on? The one trump bullshits about? The one China has not spoken to them about? Nice deal! 😋

Whole-Energy2105

China is going to show trump that not only will it continue to get oil from Iran but also that it will continue to stand firm in trade issues.   The squeezing of the balls won’t let up.  China has time.   Trump does not.

Agreeable-Purpose-56

China is laughing how Fast trumps regime is crashing the economy

MiniMini662

Anleekij

YamImpossible9698

Funny Trump doesn't care that China gives aid to Russia in the Russia Ukraine war though.

notedeghost

News flash! Most Americans don't agree with negotiations with terrorists or those who promote them. Is that really hard to understand? I know what the last failed administration tried to promote. Clue in to current times.

tooexperienced2argue

That Trade deal with India they’ve been proudly boasting about ? India is also Iran’s customer.

Careful-Trade-9666

So long trade deal.

While assessing the situation, Chinese authorities reiterated Beijing’s request for the U.S. to “correct its wrongdoings” by removing all unilateral tariffs. Failure to do so would indicate “an outright lack of sincerity” from Washington and “further compromise mutual trust,” according to a CNBC translation.

PatientBaker7172

He has no plans to deal with China he thinks they will back down . That's not going to happen

Jolly-Midnight7567

Really tired of the entire world getting jerked around depending on what side of the bed this idiot falls out of. Jfc. 

ddoyen

Don't get excited. Soon enough he'll be singing a different song. It'll be like he never even said it. He's just stroking off in public again, per usual.

downtherabbbithole

The United States has imposed new sanctions targeting Iran's oil trade, specifically focusing on companies that facilitate the shipment of Iranian crude oil to China.

US Sanctions on Iran's Oil Trade and Its Impact on China

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Public Sentiment Summary

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