Saturday, August 23, 2025

Latest

China Slams US As Iran Attacks Threaten Beijing’s $400 Billion Oil Pact With Tehran

The escalating conflict in Iran is eroding the value of China’s 25-year, US$400 billion Comprehensive Strategic Partnership Agreement with Tehran, a deal centered on discounted oil supplies and large-scale infrastructure projects.

Signed in 2021, the pact was designed to give China long-term access to Iranian crude while anchoring Belt and Road investments across ports, pipelines, and rail links.

Recent US and Israeli strikes on Iranian nuclear facilities, however, have rewritten Beijing’s risk calculus by intensifying concerns over regional stability and the reliability of the Strait of Hormuz, the critical choke-point for Persian Gulf exports.

“The actions of the US seriously violate the purposes and principles of the UN Charter and international law, and have exacerbated tensions in the Middle East,” foreign ministry spokesman Lin Jian said on Saturday.

He urged Israel to “reach a ceasefire as soon as possible,” adding that China is ready to cooperate with the international community to “restore peace and stability.”

For Chinese planners, two vulnerabilities now dominate deliberations. First, any sustained disruption in the Strait of Hormuz would squeeze deliveries that still account for a meaningful slice of China’s crude slate. State-owned refiners such as Sinopec and PetroChina could face costlier alternative supplies just as Beijing tries to contain domestic inflation and support manufacturing margins.

Second, Beijing takes pride of its global deals as part of its hegemonic diplomacy. The Iran partnership ties China’s reputation—along with its financial exposure—to a regime under military pressure and international scrutiny. Continued alignment risks secondary US sanctions on Chinese banks, engineering firms, and shipowners, echoing the costly fallout from past ventures in Venezuela and Sudan.

Analysts note that Beijing has few attractive exit options. Scaling back would weaken its broader Gulf presence and cede regional influence to rivals, yet doubling down could leave billions stranded if Tehran’s political or fiscal position deteriorates further.


Information for this story was found via the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Aya Gold Q2 Earnings: Production Slips Amid Ramp Up

i-80 Gold Q2 Earnings: Better, But Not Great

Artemis Q2 Earnings: Strong Start For A New Operator

Recommended

Emerita Resources Expands El Cura Drill Program By 10,000 Metres As Deposit Remains Open For Expansion

ESGold Signs MOU For Tailings Project In Colombia With Grades Up To 42 g/t Gold, 280 g/t Silver

Related News

China Is Campaigning To Stop The TikTok Ban

Recent developments reveal a concerted effort by Chinese Communist Party (CCP) state media to propagate...

Monday, March 11, 2024, 11:08:07 AM

US Blocks TSMC’s China Shipments of Advanced AI Chips

The US Department of Commerce has directed Taiwan Semiconductor Manufacturing Co to stop shipping advanced...

Monday, November 11, 2024, 02:58:00 PM

Huawei Gets Approval from US Officials to Buy Chips for its Auto Business

In a rather surprising turn of sentiment, Washington has begun approving license applications that would...

Wednesday, August 25, 2021, 05:57:14 PM

Chinese Foreign Ministry Says They’re ‘Ready to Fight,’ Calls Fentanyl Crisis a ‘Flimsy Excuse’ for US Trade Actions

China says they are "ready to fight" any war till the end....
Thursday, March 6, 2025, 10:47:00 AM

Pentagon’s Secret Anti-Vax Campaign to Undermine China During Pandemic Exposed

An extensive investigation by Reuters has unveiled a clandestine campaign by the U.S. military aimed...

Sunday, June 16, 2024, 11:45:00 AM