Iran is pinning its hopes on Asian oil consumers as it battles to protect crude exports and shield its economy from tough US sanctions. The US has been lobbying oil importers such as India, China and Japan to end crude purchases from Iran, as Donald Trump’s administration ratchets up the pressure on the Islamic republic. Washington has suggested waivers to consumer countries keen to continue buying Iranian oil will be in short supply.
Iranian analysts and western diplomats say that China, which is caught up in a spat of its own with the US over trade tariffs, could be the determining factor in helping Tehran withstand economic pressure when new sanctions on its vital energy industry kick in from November. “If China . . . buys Iran’s oil, we can resist the US,” said one Iranian economic analyst, who declined to be named.
“China is the only country which can tell the US off.” China, India, Japan and South Korea account for almost 65 per cent of the 2.7m barrels a day Iran exported in May, according to Kpler, the tracking company. Iranian crude is also exported to countries in Europe, Turkey and elsewhere in the Middle East.