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Iran’s Petrochemical, Fuel Sales Boom as Sanctions Hit Crude Exports

Sanctions affect Iranian crude exports (Reuters)
Sanctions affect Iranian crude exports (Reuters)
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Iran’s Petrochemical, Fuel Sales Boom as Sanctions Hit Crude Exports

Sanctions affect Iranian crude exports (Reuters)
Sanctions affect Iranian crude exports (Reuters)

Iranian fuel and petrochemical exports have boomed in recent years despite stringent US sanctions, leaving Iran well placed to expand sales swiftly in Asia and Europe if Washington lifts its curbs, trading sources and officials said.

The US imposed sanctions on Iran’s oil and gas industry in 2018 to choke off the Islamic Republic’s main source of revenues in a dispute with Tehran over its nuclear work.

The steps crippled crude exports but not sales of fuel and petrochemicals, which are more difficult to trace. Crude can be identified as Iranian by its grade and other features, while big oil tankers are more easily tracked via satellite.

Iran exported petrochemicals and petroleum products worth almost $20 billion in 2020, twice the value of its crude exports, oil ministry and central bank figures show. The government said in April they were its main source of revenues.

“The world is vast and the ways of evading sanctions are endless,” Hamid Hosseini, board member of Iran’s Oil, Gas and Petrochemical Products Exporters’ Union in Tehran, told Reuters.

Competitive prices and Iran’s location, close to major shipping lanes, made its products attractive, he said.

There are also many more buyers of refined products than importers with refineries configured to process Iranian crude.

In addition, Iran exports some fuel by trucks to its neighbors, which involve small transactions that are tough for the US Treasury to detect.

Tehran has been in talks since April to revive its nuclear pact with six world powers, after the US under President Donald Trump withdrew from the deal in 2018 and ratcheted up sanctions.

Iran says it will only restrict its nuclear work under the pact if US sanctions are scrapped.

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Taiwan Demonstrates Sea Defenses against Potential Chinese Attack as Tensions Rise with Beijing

A Taiwan navy Tuo Chiang-class corvette(rear) and Kuang Hua VI-class missile boat (front) maneuver during a drill in Kaohsiung, Taiwan, 09 January 2025. EPA/RITCHIE B. TONGO
A Taiwan navy Tuo Chiang-class corvette(rear) and Kuang Hua VI-class missile boat (front) maneuver during a drill in Kaohsiung, Taiwan, 09 January 2025. EPA/RITCHIE B. TONGO
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Taiwan Demonstrates Sea Defenses against Potential Chinese Attack as Tensions Rise with Beijing

A Taiwan navy Tuo Chiang-class corvette(rear) and Kuang Hua VI-class missile boat (front) maneuver during a drill in Kaohsiung, Taiwan, 09 January 2025. EPA/RITCHIE B. TONGO
A Taiwan navy Tuo Chiang-class corvette(rear) and Kuang Hua VI-class missile boat (front) maneuver during a drill in Kaohsiung, Taiwan, 09 January 2025. EPA/RITCHIE B. TONGO

Taiwan on Thursday demonstrated its sea defenses against a potential Chinese attack as tensions rise with Beijing, part of a multitiered strategy to deter an invasion from the mainland.
The island’s navy highlighted its Kuang Hua VI fast attack missile boats and Tuo Chiang-class corvettes in waters near Taiwan’s largest port of Kaohsiung, a major hub for international trade considered key to resupplying Chinese forces should they establish a beachhead on the island.
The Kuang Hua VI boats, with a crew of 19, carry indigenously developed Hsiung Feng II anti-ship missiles and displayed their ability to take to the sea in an emergency to intercept enemy ships about to cross the 44-kilometer (24-nautical mile) limit of Taiwan’s contiguous zone, within which governments are permitted to take defensive action.
China routinely sends ships and planes to challenge Taiwan’s willingness and ability to counter intruders, prompting Taiwan to scramble jets, activate missile systems and dispatch warships. Taiwan demanded on Wednesday that China end its ongoing military activity in nearby waters, which it said is undermining peace and stability in the Taiwan Strait and disrupting international shipping and trade.
Mountainous Taiwan's strategy is to counter the much larger Chinese military with a relatively flexible defense that can prevent Chinese troops from crossing the strait. Landing sites are few on Taiwan's west coast facing China, forcing Beijing to focus on the east coast.
Hsiao Shun-ming, captain of a Tuo Chiang-class corvette, said his ship’s relatively small size still allows it to “deliver a formidable competitive power” against larger Chinese ships. The Tuo Chiang has a catamaran design and boasts high speeds and considerable stealth ability.
Taiwan has in recent years reinvigorated its domestic defense industry, although it still relies heavily on US technology such as upgraded fighter jets, missiles, tanks and detection equipment. US law requires it to consider threats to the island as matters of “grave concern,” and American and allied forces are expected to be a major factor in any conflict.
Thursday's exercise “demonstrates the effectiveness of asymmetric warfare, and Taiwan’s commitment to defense self-reliance,” said Chen Ming-feng, rear admiral and commander of the navy’s 192 Fleet specializing in mine detection. “We are always ready to respond quickly and can handle any kind of maritime situation.”
China's authoritarian one-party Communist government has refused almost all communication with Taiwan's pro-independence governments since 2016, and some in Washington and elsewhere say Beijing is growing closer to taking military action.
China considers Taiwan a part of its territory, to be brought under its control by force if necessary, while most Taiwanese favor their de facto independence and democratic status.