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Page added on August 4, 2018
China Won’t Stop Buying Iranian Crude Oil Despite US Request
Beijing has declined a request by U.S. envoys to stop importing crude oil from Iran, Bloomberg reports, citing unnamed sources in the know. While this is a major setback in President Trump’s quest of cutting Iranian oil exports to zero by November 4, Beijing, according to the sources, agreed to not increase its imports of Iranian crude.
U.S. officials are traveling around the world to persuade allies to suspend imports of Iranian oil ahead of the sanctions, but analysts doubt the push will be completely successful, as Iran’s return on international oil markets provided a very welcome diversity of oil supplies for buyers from Asia to Europe.
Iran, on the other hand, has warned the United States that Tehran would respond with “equal countermeasures” if the United States tries to block Iranian crude oil exports. “If America wants to take a serious step in this direction it will definitely be met with a reaction and equal countermeasures from Iran,” said foreign ministry spokesman Bahram Qassemi in early July.
Also in early July, the remaining signatories to the Joint Comprehensive Plan of Action, often called the Iran nuclear deal, declared their support for Iran in the face of the U.S. pull-out. The UK, France, Germany, Russia, and China assured Tehran that they will continue buying Iranian crude and maintain trade and investment relations despite the return of U.S. sanctions, although analysts are again skeptical that European oil companies will be able to conduct business in Iran after November 4. Indeed, French Total has already announced its withdrawal from the South Pars gas project after the State Department made a note of telling everyone concerned that no sanction waivers would be granted.
Besides China, Iran’s other top oil client, India, tried to make a stand initially, saying it would not honor Washington’s unilateral sanctions, but later Indian refiners started cutting back the amount of oil they purchase, citing concerns about their continued access to the U.S. financial market.
At the same time, however, Washington has softened its tone, saying that waivers may in fact be granted for some oil-dependent allies that are unable to quickly find a replacement for Iranian crude.
By Irina Slav for Oilprice.com
11 Comments on "China Won’t Stop Buying Iranian Crude Oil Despite US Request"
Cloggie on Sat, 4th Aug 2018 4:01 pm
“The UK, France, Germany, Russia, and China assured Tehran that they will continue buying Iranian crude and maintain trade and investment relations”
Time for talks between France, Germany, Russia and China for a united front against the US.
In 2003 France, Germany and Russia refused US orders to join in the rape of Iraq on a pack of lies.
Now the US is again on the lookout for a prey for its MIC, again on false charges. Eurasia is convinced Iran is not working on nukes, based on inspections. Nobody in Eurasia has an interest in Iranian nukes. You cannot abolish a program you don’t have.
Eurasia can of course continue to be willing to buy Iranian oil, but the US is in a position to block export of Iranian oil from the Gulf, the US can verify from space where ships are coming from.
If the US does this, Iran can (threaten to) retaliate against any ship in the Gulf. There is nothing the US can do about missiles mounted on trucks, applying hit and run tactics.
The end effect is that the US effectively starves both Europe and China of oil and gas. It will take a few months but eventually reserves will be depleted and begging for Russian oil and gas will begin.
US popularity in Eurasia will sink to new lows. Countermeasures will be in place and a massive trade war begin.
Interesting will be the behavior of Turkey. Together with Iran they could attack KSA and topple the US vassals, with the backing of Eurasia.
Interesting times.
twocats on Sat, 4th Aug 2018 5:50 pm
a direct attack on the united states allowing trump to unleash the full force of the US military? that would be the greatest gift ever given to trump, would assure him the midterms and cement the republican party as the dominant party for decades with census manipulation, gerrymandering, voter suppression, and so on.
yes its a risky bet – but trump is a risky gambler when playing with other people’s money. they want this to happen.
Sissyfuss on Sat, 4th Aug 2018 7:00 pm
“Trump is a risky gambler when playing with other peoples money”.
A gem, Twocats. But frightening nevertheless.
Davy on Sat, 4th Aug 2018 7:20 pm
Chinese companies with significant interests in the US will not be buying Iranian oil and those without will. This is not rocket science. Of course China is going to continue as a nation to support Iran. Iran is central part of their Belt Road initiative.
dave thompson on Sat, 4th Aug 2018 7:43 pm
Why is it the U$ biz in the first place? China and Iran can do what they want.
makati1 on Sat, 4th Aug 2018 11:32 pm
Exactly, dave. Why is the Us in the ME or S.E.Asia at all? They can buy oil, not try to take it by force, which hasn’t worked so well for them anyway.
Survivalist on Sun, 5th Aug 2018 12:49 am
“Why is it the U$ biz in the first place? China and Iran can do what they want.”
Cuz Trump is Bibi’s poodle.
Outcast_Searcher on Mon, 6th Aug 2018 11:42 am
Can’t China just buy all the Iranian oil they want? Or just buy all of it? Maybe they can get a discount if they agree to do so — good for everybody but the US getting what they want.
Sanctions will only work well if all the major players cooperate. The US and China trade very heavily.
Congress isn’t just going to stand by and tolerate it if Trump tries to end all trade with China.
peakyeast on Tue, 7th Aug 2018 9:58 am
We better make that Chinese war ASAP. The best plan is to make a fake attack on India with China as the attacker. Just a small nuke or two – during one of their retarded altercations in the mountains…
https://www.express.co.uk/news/world/922795/World-War-3-China-India-military-conflict-fighter-jet-border-tension-Beijing-New-Delhi
Boat on Tue, 7th Aug 2018 10:04 am
Clog
Did you read the Trump demands of Iran?
They could join the free world in peace with a little moderation. Any war is an Iranian choice.
Cloggie on Tue, 7th Aug 2018 12:01 pm
Did you read the Trump demands of Iran?
They could join the free world in peace with a little moderation. Any war is an Iranian choice.
No, tell me about it.
The rule is: you bomb, your choice. Add to Karma. At some you are going to be presented the bill for cumulative actions. Yours is a century long. Don’t expect to be powerful for much longer. Once the civil war breaks out, judgment day has arrived.