Iran Plans Continue Oil Sales to China Despite UN Sanctions Risk

Iran's Oil Minister Mohsen Paknejad has stated that Iran will continue its oil exports to China even if UN sanctions are reimposed through the snapback mechanism, set to activate on September 27 if no deal is reached to prevent it. This comes amid a 30-day period initiated by France, Britain, and Germany to restore sanctions due to Iran's alleged failure to comply with the 2015 nuclear deal, which demands Iran grant UN inspectors access to sensitive sites and limit enriched uranium stockpiles. Paknejad emphasized that UN sanctions would not significantly impact Iran's oil sales, given the severe unilateral US sanctions already in place. Data indicates that China accounts for nearly 80% of Iran's oil exports, and despite renewed sanctions, Iran's crude shipments have rebounded to around 1.5 million barrels per day in 2024. The snapback sanctions are unlikely to deter China, which has consistently defied Western restrictions and may benefit from discounted Iranian crude. The European move signals the collapse of the 2015 nuclear agreement and could lead to increased compliance risks for other buyers, but Iran's trade with China is expected to remain robust.