Even with occasionally reduced oil imports, Beijing has been Tehran’s lifeline to circumvent oil sanctions for years, providing a stable source of cash while nearly all countries dialed down their reliance on energy supplies from Iran. This was crucial when Iran’s oil output halved to just 2 million barrels per day (bpd) in 2020. Now, the crude-based relationship between Iran and China is stronger than ever, particularly since China is on overdrive to catch up with the United States economically, fueled by a steady stream of oil delivered from all corners of the world, including Iran.

In January, Indonesia seized two supertankers that were transferring oil at sea. One of the vessels, MT Horse, was Iranian-flagged and crewed by Iranian nationals. The other, MT Freya, was Panamanian, crewed by Chinese seamen, and managed by Shanghai Future Ship Management Co, a subsidiary of yet another Shanghai-based maritime firm called Chengda. The maritime sleight of hand was meant to disguise the crude’s provenance. China imports Iranian oil through direct means, ship transfers, and by mixing crude from Iran and other sources.

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Read the full blog post at the Atlantic Council.