China is disregarding U.S. sanctions by significantly buying Iranian oil, generating billions in profits that Tehran can then channel to its anti-Israel allies, notably Hamas.
According to the “October 2023 Iran Tanker Tracker” by United Against Nuclear Iran, the Islamic republic has exported over $80 billion worth of oil since the Biden administration began. The analysis highlights China as the primary buyer, despite U.S. sanctions on Iranian oil sale profits and secondary sanctions on companies involved in shipping Iranian oil.
- China’s average purchase was around 1 million barrels per day in October, according to a recent Congressional Research Service report.
- China plays a massive role in increasing Iran’s oil exports.
- The CRS report suggests the Biden administration may be willingly ignoring China’s purchases of Iranian crude, speculating that the administration does not want to escalate tensions with Beijing.
- Serious reductions of Iranian oil exports could raise global crude prices, the CRS noted.
The lack of strict sanction enforcement, notably after the recent Hamas attack on Israel, has raised congressional concerns. Efforts are underway among U.S. senators to reinforce existing restrictions on Iran.
Sen. Joni Ernst, Iowa Republican, is leading a bipartisan bill to create a $150 million fund for Homeland Security Investigations to enforce Iranian oil sanctions. Though the investigative office has previously seized two Iranian oil cargoes, these actions come with high upfront costs that haven’t always been fully available, as reported by Reuters.
A comprehensive version of this article by Guy Taylor may be found HERE
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