Why Iran oil sanctions on China may not prove as effective as Trump hopes
Washington has sanctioned entities in China and the United Arab Emirates involved in the trade of oil and drone components with Tehran.
After intensifying its sanctions regime against Iran last week, Washington has now targeted entities in China and the United Arab Emirates involved in the trade of oil and drone components with Tehran.
Aiming to tighten Iran’s revenue streams and disrupt its military capabilities, over 30 entities including brokers, tanker operators and shipping companies across the UAE, China, Hong Kong and India are now under US sanctions.
Among those sanctioned are the heads of Iran’s National Iranian Oil Company and the Iranian Oil Terminals Company, accused of brokering the sale and transportation of Iranian crude oil worth hundreds of millions of dollars. Typically, such measures lead to a freeze on US assets of those targeted and a ban on Americans from dealing with them.
Beyond oil, various Chinese companies have also been penalized for procuring components for Iran’s drone and ballistic missile program. Any financial institution dealing with them could risk secondary sanctions and these firms could face asset seizures, penalties and visa restrictions.
