Biden: There is Enough Petroleum to Reduce Amount Purchased from Iran

China National Petroleum Corporation (CNPC)'s Dalian Petrochemical Corp refinery is seen near the downtown of Dalian in Liaoning province, China July 17, 2018. REUTERS/Chen Aizhu//File Photo
China National Petroleum Corporation (CNPC)'s Dalian Petrochemical Corp refinery is seen near the downtown of Dalian in Liaoning province, China July 17, 2018. REUTERS/Chen Aizhu//File Photo
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Biden: There is Enough Petroleum to Reduce Amount Purchased from Iran

China National Petroleum Corporation (CNPC)'s Dalian Petrochemical Corp refinery is seen near the downtown of Dalian in Liaoning province, China July 17, 2018. REUTERS/Chen Aizhu//File Photo
China National Petroleum Corporation (CNPC)'s Dalian Petrochemical Corp refinery is seen near the downtown of Dalian in Liaoning province, China July 17, 2018. REUTERS/Chen Aizhu//File Photo

US President Joe Biden said in a memo to the US State Department on Friday that there were sufficient supplies of petroleum so other countries can reduce what they buy from Iran.

Reuters said that the White House is required to affirm every six months that there is enough oil supply globally to maintain sanctions against Iran that were put in place in 2012, during Barack Obama's administration.

Biden's statement comes in advance of a virtual meeting with China's President Xi Jinping on Monday, in what is expected to be the leaders' most extensive meeting since Biden took office.

China is the largest purchaser of Iranian oil, averaging purchases of more than 500,000 barrels a day over the last three months.

Chinese purchases of Iranian crude have continued this year despite sanctions that, if enforced, would allow Washington to cut off those who violate them from the US economy.

The Biden administration is currently not enforcing those sanctions ahead of forthcoming negotiations with Iran to revive a 2015 nuclear deal that would let that nation sell its oil openly again.

"Consistent with prior determinations, there is a sufficient supply of petroleum and petroleum products from countries other than Iran to permit a significant reduction in the volume of petroleum and petroleum products purchased from Iran by or through foreign financial institutions," Biden said in the memo.



Ships with Missile Propellant Ingredient Reportedly Set to Sail from China to Iran

A picture shows copies of Iranian daily newspapers, including 'Sazandegi' (C) showing on its front page a picture of US President Donald Trump and a headline in Farsi reading 'Again Trump' at a newsstand in Tehran on January 21, 2025. (Photo by ATTA KENARE / AFP)
A picture shows copies of Iranian daily newspapers, including 'Sazandegi' (C) showing on its front page a picture of US President Donald Trump and a headline in Farsi reading 'Again Trump' at a newsstand in Tehran on January 21, 2025. (Photo by ATTA KENARE / AFP)
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Ships with Missile Propellant Ingredient Reportedly Set to Sail from China to Iran

A picture shows copies of Iranian daily newspapers, including 'Sazandegi' (C) showing on its front page a picture of US President Donald Trump and a headline in Farsi reading 'Again Trump' at a newsstand in Tehran on January 21, 2025. (Photo by ATTA KENARE / AFP)
A picture shows copies of Iranian daily newspapers, including 'Sazandegi' (C) showing on its front page a picture of US President Donald Trump and a headline in Farsi reading 'Again Trump' at a newsstand in Tehran on January 21, 2025. (Photo by ATTA KENARE / AFP)

Two Iranian cargo vessels carrying an ingredient for missile propellant will sail from China to Iran in the next few weeks, the Financial Times reported on Wednesday, citing intelligence from security officials in two Western countries.

The reported transactions could make the Chinese entities involved subject to US sanctions aimed at curbing Iran's weapons programs, as the two Iranian vessels are already under US sanctions.

The FT said the Iranian-flagged ships, the Golbon and the Jairan, are expected to carry more than 1,000 tons of sodium perchlorate, which is used to make ammonium perchlorate, the main ingredient for solid propellant for missiles.

Ammonium perchlorate is among chemicals controlled by the Missile Technology Export Control Regime, a voluntary international anti-proliferation body, Reuters reported.

The FT report cited two unnamed officials as saying that the sodium perchlorate could produce 960 tons of ammonium perchlorate, enough to make 1,300 tons of propellant, which could fuel 260 mid-range Iranian missiles.

The officials said the sodium perchlorate was being shipped to Iran's Revolutionary Guard Corps (IRGC) and that 34 20-foot (six-meter) containers containing the chemical had been loaded onto the Golbon, which departed the Chinese island of Daishan on Tuesday and was off the coast of Ningbo in China’s Zhejiang province early on Wednesday.

The FT said the Jairan is expected to depart China with 22 containers in early February. The officials told the FT that both ships, owned by Iranian entities, were expected to make the three-week voyage to Iran without making any port calls.
The officials said the chemicals were loaded onto the Golbon at Taicang, a port just north of Shanghai, and were destined for Bandar Abbas in southern Iran on the Arabian Gulf.

The FT said the officials could not say if Beijing was aware of the shipments.

The spokesperson for China's Washington embassy, Liu Pengyu, said he was not familiar with the situation reported by the FT.

Doug Jacobson, a Washington-based sanctions lawyer, said that while UN sanctions on Iran's missile program were no longer in effect, the Chinese entities involved in the reported transactions could face US sanctions against dealings with both the IRGC and the already sanctioned vessels.

Vann Van Diepen, a retired US non-proliferation official, said Chinese entities had been helping Iran's missile program since the 1980s. He said Iran probably had its own ammonia perchlorate production facility by now, but may need feedstock to make the chemical.

"It's probably not sort of a continuous flow thing," he said. "But from time to time, over these many years, these kinds of shipments will go on."

The US State Department did not immediately respond to a request for comment, but an official there, who did not want to be identified, said that if the missiles were designed to be used by
Russia in Ukraine, the shipment could be subject to US sanctions to curb dealings with Moscow.

In 2023, The United States imposed sanctions on people and entities in China, Hong Kong and Iran, including Iran's defense attache in Beijing, over accusations they helped procure parts and technology for Iran's ballistic missile development. It imposed similar sanctions on individuals and entities last year.