Iran Uses Chinese Oil Terminals to Circumvent U.S. Sanctions, Leaked Document Shows

Iran is reportedly relying on oil terminals and storage facilities in China to maintain the flow of sanctioned crude shipments, according to a confidential document obtained by Iran International and corroborated by sources in the Iranian Oil Ministry. The arrangement allows Iranian tankers, which have been barred from loading oil since late August, to offload and store oil in Chinese ports, thereby sidestepping the U.S. naval blockade and related sanctions.

U.S. Central Command estimates that the naval blockade has cut more than $25 billion in Iranian crude exports, prompting Tehran to seek alternative routes. The leaked paper describes a network of roughly 20 civilian and military personnel based in Tampa that coordinates with other U.S. agencies under the “Iron Gate” task force, but it does not grant new authority to board vessels in the Caspian Sea or access neighboring ports.

Analysts note that the United States’ most effective leverage may lie with suppliers upstream of the region, as distributors with access to American finance face greater risk than already-sanctioned Iranian shipping firms. Targeting these intermediaries could disrupt Iran’s ability to procure essential machine tools, electronics and engines needed for its military-industrial complex.

Russia’s involvement complicates enforcement, as Moscow’s military partnership with Tehran provides an alternative supply corridor. While the Caspian route cannot fully replace Iran’s southern gateways, it can still convey smaller volumes of critical equipment, making individual shipments more vulnerable to disruption.

Regional partners exhibit mixed responses. Kazakhstan’s deputy prime minister cited payment risks that stalled contracts with Iran, yet the country later signed a logistics-terminal agreement at Iran’s Shahid Rajaee port. Azerbaijan briefly halted cargo crossings after accusing Iran of a drone attack, reopening them within days. Turkmenistan has discussed expanding transit cargo and a railway linking China, Kazakhstan and Iran, indicating a willingness to keep routes open.

Iran’s energy sector has also suffered extensive damage from repeated strikes, with satellite analysis confirming destruction of oil storage tanks and gas-processing facilities. Repairs are underway, but sanctions, limited investment and the threat of further attacks hinder full recovery.

U.S. Treasury officials said Iran has not loaded oil onto vessels since August 25 and highlighted a 25 % decline in the rial and soaring inflation as broader economic impacts of the sanctions campaign. The Treasury warned that entities facilitating sanctions evasion could face additional action.

The Chinese foreign ministry denied knowledge of the shipments and rejected attempts to link Beijing to the regional conflict. European manufacturers such as Iveco and Toyota stated they have safeguards to prevent their products from reaching prohibited users, though they cannot control resale by third parties.

A U.S. Treasury spokesperson reiterated that Washington will continue to enforce sanctions, asserting that the regime’s attempts to evade restrictions are being countered by “powerful sanctions.”