The sanctions imposed by the Trump administration are hitting Iran in one of its most vulnerable spots — the oil sector. In May, there was a sharp drop of dozens of percentage points in Iranian oil sales to China — its largest customer — compared to the same month last year.
20% Drop in Exports
China, the only country still purchasing large quantities of oil from Iran, is considered a key player in Iran’s oil-dependent economy. The U.S. sanctions targeting Iran’s oil sector — and particularly Chinese refineries — have caused a significant decline in Iranian oil exports.
According to a Bloomberg report, Iranian oil exports to China in May stood at 1.1 million barrels per day, a 20% drop compared to May 2024. This decline is a major blow to Iran, as oil exports are one of its main sources of revenue.
Sanctions on Iran’s Partners — and How Tehran Tries to Evade Them
Since May 2020, President Trump declared on social media that any country or individual purchasing oil or petrochemicals from Iran would face secondary sanctions barring them from doing business with the U.S. In recent months, the U.S. Treasury has also sanctioned independent Chinese refineries suspected of purchasing Iranian oil, with warnings against further deals.
Iran, in turn, is attempting to evade the sanctions through covert mechanisms. For example, Iranian oil tankers are conducting ship-to-ship transfers in international waters to disguise the oil’s Iranian origin.
The Iranians Will Face Serious Consequences
Amid ongoing nuclear negotiations with Iran, Axios reported that the U.S. has proposed a new deal that would allow Iran to enrich uranium on its territory, only for civilian use, at low levels, and for a limited time.
White House spokesperson Karoline Leavitt did not deny the report and addressed the talks: “The President made his position clear last night. In fact, it couldn’t be clearer — and I reiterate, this is his position,” she emphasized.
“Special envoy [Steve] Witkoff submitted a detailed and widely accepted proposal to the Iranian regime, which the President hopes they will accept. If not, they will face serious consequences,” Leavitt declared.
President Donald Trump also commented on the nuclear talks via his Truth Social platform: “In our potential agreement — we will not allow any uranium enrichment.”
Nonetheless, according to The New York Times, the U.S. offered a temporary arrangement that would allow Iran to continue enrichment under supervision, until a permanent mechanism is put in place to limit — and eventually end — the program.
