How China Keeps Iran's Oil Industry Afloat
4/22/202619 min
Get your tickets to our L.A. live show here!In the first Trump administration, the U.S. launched a “maximum pressure” campaign to cut Iranian oil from the global market and eliminate Tehran’s biggest source of revenue. Today, Iran sells billions of dollars’ worth of oil every month via a shadow fleet of ships that have been passing through the Strait of Hormuz. WSJ’s Rory Jones takes us inside Iran’s underground network for shipping, processing and selling oil in China. Ryan Knutson hosts. Further Listening: - How Iran's Regime Changed... for the Worse
- The Strait of Hormuz Showdown
- In Iran, an Uneasy Calm Amid a Cease-Fire Sign up for WSJ’s free What’s News newsletter. Learn more about your ad choices. Visit megaphone.fm/adchoices
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Transcript preview
First 90 secondsRyan Knutson· Host0:00
[music] Iran's oil industry has been under harsh sanctions for nearly a decade, and the US imposes penalties on any countries that buy it. [music] And yet Iran has found a way to keep selling its oil, primarily through a massive underground network.
Speaker 10:22
The so-called shadow fleet of ships.
Mike Pompeo· Soundbite0:25
Tankers designed specifically to evade monitoring and sanctions.
Speaker 30:29
Well, for Iran, this network has become a critical tool to keep its oil revenues flowing despite- After the US and Israel attacked Iran, Iran closed the Strait of Hormuz, preventing other Middle Eastern countries from exporting their oil.
Ryan Knutson· Host0:42
But Iran has continued allowing this ghost fleet safe passage. How important is this for the Iranian regime and its survival?
Rory Jones· Guest0:52
I don't think that Iran could have fought this war necessarily without the billions and billions of dollars it's received, equivalent of dollars it's received from, uh, these oil sales over the years. So this is a significant chunk of cash for Iran annually, and it's a vital lifeline for the country.
Ryan Knutson· Host1:15
That is, until last week. After peace talks collapsed, Trump announced a naval blockade on Iran's Gulf ports in an attempt to shut down its ghost fleet.