Iran Sells Its Oil Stored in China to Finance Operations in the Middle East

Patrol vessel KN. Pulau Marore-322, owned by Indonesia's Maritime Security Agency (Bakamla) patrols to inspect the Iranian-flagged Very Large Crude Carrier (VLCC), MT Arman 114, and the Cameroon-flagged MT S Tinos (Reuters)
Patrol vessel KN. Pulau Marore-322, owned by Indonesia's Maritime Security Agency (Bakamla) patrols to inspect the Iranian-flagged Very Large Crude Carrier (VLCC), MT Arman 114, and the Cameroon-flagged MT S Tinos (Reuters)
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Iran Sells Its Oil Stored in China to Finance Operations in the Middle East

Patrol vessel KN. Pulau Marore-322, owned by Indonesia's Maritime Security Agency (Bakamla) patrols to inspect the Iranian-flagged Very Large Crude Carrier (VLCC), MT Arman 114, and the Cameroon-flagged MT S Tinos (Reuters)
Patrol vessel KN. Pulau Marore-322, owned by Indonesia's Maritime Security Agency (Bakamla) patrols to inspect the Iranian-flagged Very Large Crude Carrier (VLCC), MT Arman 114, and the Cameroon-flagged MT S Tinos (Reuters)

Iran has shipped nearly 3 million barrels of oil from a storage site in China in a bid to raise funds that could be used to shore up Iran’s allied militia groups in the Middle East, people familiar with the matter told The Wall Street Journal last week.
The oil was taken from a stockpile of at least 25 million barrels that Iran had sent to China in late 2018.
China approved Iran's oil exports after talks with Iranian officials in late November and December 2024, sources told the newspaper.
The additional oil revenue comes at a crucial time for Iran, as it tries to support its allied militias in the region, such as Hezbollah, which have been battered in conflicts with Israel.
The fall of the Assad regime came as another blow, choking off the land route that Iran used to supply Hezbollah with cash and weapons, WSJ said.
The newspaper warned that the IRGC has taken charge of unloading and claiming this oil. There are concerns that the proceeds from its sale may be transferred to Iran’s regional proxy force, it noted.
US officials specifically raised concerns about the money flowing to the IRGC in its contacts with Beijing, one of the people told the newspaper.
A representative of the Chinese Foreign Ministry said that the ministry is not aware of this situation, but Beijing cooperates with all countries, including Iran, within the bounds of international law.
China has opposed the US “abuse of illegal and unreasonable unilateral sanctions” against Iran, the spokesperson said.
China's decision to allow Iran to ship the oil could stoke tensions with Washington, as President-elect Donald Trump prepares to take office. In his first term, Trump moved aggressively to curtail Iranian oil sales.
Trump’s transition team has said he would return to his maximum pressure campaign once he takes office on Jan. 20. China, as the largest buyer of Iranian oil, could be critical to that effort.
Trump might have to decide what he wants to give priority to in his relationship with Beijing, given his demands on trade and other issues.
The oil that Iran stored in China in 2018 has been at two ports—in Dalian, east of Beijing, and Zhoushan, south of Shanghai, the people said. Two vessels—the Madestar and CH Billion—recently set sail for Dalian, people told WSJ.
Madestar left the Dalian port in early January loaded with 2 million barrels of oil, and the CH Billion is believed to be still docked there, set to be loaded with 700,000 barrels, they said.
The US Treasury Department sanctioned 35 entities and vessels on Dec. 3 that it said played a role in transporting illicit Iranian petroleum to foreign markets.
Then on December 19, the Treasury imposed additional sanctions on entities and vessels, including a China-based company, to stem the flow of revenue that the Iranian regime uses to support terrorism abroad, as well as to oppress its own people.
In 2024, Iran exported 587 million barrels of oil. China imports accounted for 91% of Iran's total exports, the WSJ said. But much of the funds from those sales have remained abroad because of the impact of US financial sanctions on Tehran.
Even if Iran is ultimately able to sell all the oil now stored in China, it is unclear exactly how much money it would make.
Sanctions and the refusal of some ships to transport the oil will increase the cost of the sale and slow it down.

 

 



Pakistan’s Imran Khan Handed 14 Years Jail Term in Land Graft Case

Former Pakistani Prime Minister Imran Khan pauses as he speaks with Reuters during an interview, in Lahore, Pakistan March 17, 2023. (Reuters)
Former Pakistani Prime Minister Imran Khan pauses as he speaks with Reuters during an interview, in Lahore, Pakistan March 17, 2023. (Reuters)
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Pakistan’s Imran Khan Handed 14 Years Jail Term in Land Graft Case

Former Pakistani Prime Minister Imran Khan pauses as he speaks with Reuters during an interview, in Lahore, Pakistan March 17, 2023. (Reuters)
Former Pakistani Prime Minister Imran Khan pauses as he speaks with Reuters during an interview, in Lahore, Pakistan March 17, 2023. (Reuters)

A Pakistani court sentenced former Prime Minister Imran Khan to 14 years imprisonment on Friday in a land corruption case, a setback to nascent talks between his party and the government aimed at cooling political instability in the south Asian nation.

The verdict in the case was delivered by an anti-graft court in a prison in the garrison city of Rawalpindi, where Khan has been jailed since August 2023.

Khan's wife Bushra Bibi was also found guilty and sentenced to 7 years in prison. She was out on bail but was taken into custody after the judgment was pronounced, Geo News reported.

Law Minister Azam Nazeer Tarar told reporters that Khan's party could reach out to higher courts to appeal against the ruling, and that the former cricket star could also file a mercy petition to the president of Pakistan.

Omar Ayub, an aide of Khan, said the party will challenge the verdict in higher courts.

The former premier, 72, had been indicted on charges that he and his wife were gifted land by a real estate developer during his premiership from 2018 to 2022 in exchange for illegal favors.

Khan and Bibi had pleaded not guilty.

The case is linked to the Al-Qadir Trust, a non-government welfare body the couple set up when Khan was in office.

Prosecutors say the trust was a front for Khan to illegally receive land from a real estate developer. They said he was given 60 acres (24 hectares) near Islamabad and another large plot close to his hilltop mansion in the capital.

Khan's Pakistan Tehreek-e-Insaf (PTI) party says the land was not for personal gain and was for the spiritual and educational institution the former prime minister had set up.

"Whilst we wait for detailed decision, it's important to note that the Al Qadir Trust case against Imran Khan and Bushra Bibi lacks any solid foundation and is bound to collapse," PTI's foreign media wing said in a statement.

The announcement of the verdict was delayed three times, most recently on Monday, amid reconciliation talks between PTI and the government. The two sides have been at loggerheads since Khan was ousted from office in 2022.

The verdict is the biggest setback for Khan and his party since a surprisingly good showing in the 2024 general election when PTI's candidates - who were forced to contest as independents - won the most seats, but fell short of the majority needed to form a government.

Jailed since August 2023, Khan has been facing dozens of cases ranging from charges of graft and misuse of power, to inciting violence against the state after being removed from office in a parliamentary vote of confidence in April 2022.

He has either been acquitted or his sentences suspended in most cases, except for this one and another on charges of inciting supporters to rampage through military facilities to protest against his arrest on May 9, 2023.

His supporters have led several violent protest rallies since the May 9 incidents.

Khan's cases have been tried inside prison on security grounds.