Iran has reportedly gained control over oil terminals and storage facilities in China to keep crude exports flowing amid U.S. sanctions. A leaked letter from former Iranian officials, obtained by Iran International, shows that Iran is using a shadow fleet to continue shipping oil to its biggest buyer, China. The correspondence indicates that Iranian authorities have told intermediaries to keep sanctioned tankers operational despite restrictions.
Control of Facilities
The documents reveal that Iran has secured long-term leases for port facilities and oil terminals in China. These arrangements include control over facilities at three locations and stakes in docks in Shandong province, which hosts independent Chinese refiners. The letter explains that these facilities are crucial for maintaining Iranian crude exports under the current sanctions.
Shadow Fleet Operations
The shadow fleet, reportedly run by Ali Shamkhani's son, has been key in transporting Iranian oil to these terminals. The Iranian Foreign Ministry has been involved in these negotiations, aiming to create a hub for sanctioned Iranian crude in China. This strategy has allowed Iran to bypass U.S. sanctions effectively, despite difficulties in increasing import quotas from China.
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The setup of this oil network could boost Iranian oil exports, potentially affecting global oil supply. Brent crude prices may respond to any signs of increased supply from Iran, especially as regional tensions continue. Keep an eye on further developments regarding Iran's oil export strategies and any possible reactions from the U.S. government.
Based on reporting by: oilprice.com, moneycontrol.com