China Sustains Iran Oil Flow as Trump Pauses Freedom
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- Trump paused “Project Freedom,” the U.S. operation to reopen commercial shipping through the Strait of Hormuz, to give negotiators time to reach a deal with Iran.
- Iran launched missiles and drones at civilian vessels and the United Arab Emirates after warning it would target ships attempting the Strait of Hormuz.
- China accounted for up to 90 % of Iran’s oil exports before the war, shipping at least 11.7 million barrels between Feb 28 and Mar 10.
- China processed Iranian oil payments through the Bank of Kunlun and the Cross‑border Interbank Payment System, allowing yuan settlements that bypass the U.S.‑dominated SWIFT network.
- China’s Ministry of Commerce ordered firms on May 2 not to comply with U.S. sanctions on five Chinese refiners linked to the Iranian oil trade, letting them continue processing crude arriving by train or already at sea.
Why it matters: China gains strategic leverage over Tehran and a foothold in global energy markets; Iran secures revenue despite sanctions; the U.S. loses bargaining power as its naval pressure stalls.
