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"Maximum Pressure" Sanctions on Iran Come Back

(Wall Street Journal) Editorial - The Biden administration allowed Iran's oil exports to soar from 300,000 barrels a day in 2020 to 1.7 million a day in 2024. On Thursday, the Trump Administration sanctioned a Chinese refinery that has bought $500 million in Iranian oil. Designating Shandong Shouguang Luqing Petrochemical Co. is the first real proof that "maximum pressure" sanctions are on their way back. The Iranian oil-export problem is really a Chinese import problem. About 90% of Iran's illicit oil exports go to China, which receives a large discount. To choke off these sales, which finance Iran's terrorism abroad, the core task is to change China's risk calculus. Small refineries like this one are a key part of China's sanctions-busting strategy. Any entity that touches a sanctioned refinery, including China's state-owned enterprises, is now a viable target for U.S. sanctions. This enhances President Trump's leverage with China. Does President Xi Jinping really want Chinese energy companies and banks sanctioned? China has shown little risk tolerance where direct U.S. sanctions on its state-owned enterprises are concerned. Mr. Xi can make the business and political decision to drop Iran as a supplier. When Iran's oil exports collapse, you'll know the regime is feeling the heat. That's when nuclear talks will have their best chance of success.
2025-03-25 00:00:00
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