USA: If China and Russia continue to buy Iranian oil, they will face sanctions

The U.S. Department of the Treasury has stated that if China, Russia, and Europe continue to purchase oil from Iran, they will be subject to U.S. sanctions. Steven Mnuchin, the U.S. Treasury Secretary, made this remark during a report to the House Financial Services Committee on Thursday. During this session, Steven Lynch, a Democratic representative, asked Mnuchin whether China had agreed to stop importing oil from Iran and if Washington intended to sanction China if it did not comply. Mnuchin responded that the U.S. plans to sanction 'any country, including China,' to counter Iranian oil purchases. He further emphasized, 'Once again, our intention is to impose sanctions against Russia, Europe, and others regarding Iranian oil.' The United States officially withdrew from the JCPOA on May 8. Following this, the U.S. State Department's policy director announced on June 11 that a new round of severe sanctions against Iran would be implemented starting August 4, with subsequent measures on November 4, aiming to reduce Iran's oil exports to zero. The European Union, along with Russia and China, is trying to remain loyal to the JCPOA but has stated that U.S. sanctions have made this difficult. The International Energy Agency announced on Thursday that Iranian oil exports to Europe had halved last month due to U.S. sanctions. Russia has also been affected by these pressures. In early June, Lukoil, Russia's second-largest oil company, announced that it would not pursue projects related to Iran due to concerns over the return of U.S. sanctions. Additionally, China, Iran's largest oil customer, expressed 'hope' in late May to continue importing oil from Iran but refrained from providing guarantees. Alongside U.S. efforts to cut Iran's oil exports, the Islamic Republic is also trying to maintain its supporters. In this context, Ali Akbar Velayati, an international affairs advisor to Iran's leader, expressed satisfaction on Thursday during his visit to Russia regarding the cooperation of Russian companies 'Rosneft' and 'Gazprom' with Iran. Iranian media reported that Velayati is likely to visit China after his negotiations with Russian officials. During the previous round of sanctions against Iran, major oil customers in Asia and Europe benefited from U.S. sanctions exemptions, reducing their purchases of Iranian oil by about 20% every six months. Reports indicate that these customers are again eyeing potential exemptions. Mike Pompeo, the U.S. Secretary of State, has mentioned the possibility of granting exemptions to Iranian oil buyers but emphasized that the U.S. will not relent until Iran changes its behavior.