How China Keeps Iran's Oil Industry Afloat

Iran sustains its economy through a massive "shadow fleet" of over 500 tankers designed to evade U.S. sanctions by disabling tracking systems and conducting ship-to-ship transfers. China serves as the primary destination for this illicit oil, utilizing a network of private "teapot" refineries and shadow banking systems to bypass international financial oversight. This trade relationship, often involving barter for infrastructure projects, allows Iran to maintain a vital revenue stream despite maximum pressure campaigns. In response, the U.S. has implemented a naval blockade, aiming to disrupt these operations through the threat of force and economic pressure. While the blockade has forced some logistical shifts, the shadow network highlights a growing trend among sanctioned nations like Russia and Iran to develop alternative, non-U.S.-led financial and trade systems, complicating Washington's ability to enforce global economic policies.