China’s Oil Trade With Iran Could Undermine US Sanctions Strategy

Washington: The New York Times has said in an analysis that US efforts to isolate Iran economically are unlikely to succeed without China’s cooperation. As per reports, China is Iran’s biggest trading companion and the best significant buyer of Iranian oil, which makes it tough for Washington to overlook Beijing.

China did about $41.2 billion worth of trade with Iran in 2025, while China imported about $31.2 billion worth of crude oil from Iran in the same year. Chinese buyers sometimes account for about 90 percent of Iran’s total oil exports, according to reports.

According to the New York Times, the major buyers of Iranian oil are small private refineries in China, commonly known as “teapots.” These companies can be more protected from traditional US sanctions because they are relatively less connected to the global financial system.

The report says that the United States can impose sanctions on Iranian banks, companies, oil traders and ships, but if China buys Iranian oil and maintains trade relations with Tehran, Iran will have a major source of income.

On the other hand, China also has the means to exert economic pressure on the United States. According to the report, Beijing can affect the American technology and defense industry by restricting the export of key minerals that the United States needs. China also confirmed its economic impact by confining the trade of main crystals in trade pressures with the United States last year.

According to the analysis, this situation creates a problem for Washington: the United States can impose more sanctions on Iran, but it will be difficult to completely isolate Iran economically without Chinese cooperation.

The report also points out that the United States has moved some military assets from the Pacific due to US military activities in the Middle East. Chinese onlookers realize these actions as a probable weakening of the American military situation in Asia.

Generally, the New York Times exploration says that the US strategy to surge economic pressure on Iran depends largely on whether China cooperates with Washington or maintains its trade relations with Tehran.