Iran Uses Secret Trade Arrangements to Circumvent Oil Sanctions and Fund Chinese Imports

Iran has been using an undisclosed trade mechanism to work around restrictions on its oil exports, exchanging oil revenues for credits used to finance purchases of Chinese goods in transactions worth billions of dollars and reportedly including military equipment.

The arrangement has provided Tehran with an alternative financial channel for securing imports despite mounting US economic pressure and sanctions linked to Iran’s nuclear program.

At the same time, the mechanism has allowed China to continue purchasing Iranian crude at discounted prices while reducing the exposure of Chinese companies and financial institutions to international scrutiny and potential sanctions over dealings with Tehran.

The arrangement has increasingly served as a tool for Iran to mitigate the impact of sanctions and maintain access to essential imports, even as Washington continues to intensify economic pressure on the country’s oil sector.