Washington’s “comprehensive” package of sanctions against Tehran are expected to kick in this November, but officials say the main target, Iranian crude oil exports, will likely simply be diverted from one group of buyers to another.
A senior US energy official has told The Wall Street Journal that Washington expects China to buy up much of the oil others won’t due to the threat of US sanctions. Beijing, according to the official, will likely make the purchases through the same bank it used during the previous rounds of sanctions to get around US penalties.
This includes the Bank of Kunlun Co, Ltd, a bank affiliated with the China National Petroleum Corp with limited exposure to the global financial system. The US has threatened to sanction “everybody, including China” if they purchase Iranian oil once sanctions step into effect.