Experts Explain: Is China Fueling Terrorism In The Middle East?

Despite the stringent U.S. sanctions package aimed at curbing Iran's oil revenues, the country has seen a surge in its oil revenues by approximately 1 million barrels per day since the Biden administration assumed office in 2021.

The U.S. Energy Information Administration has reported a significant increase in China's oil purchases in 2023 compared to the previous year. Experts suggest that these revenues, seemingly in violation of the sanctions, could be funneled towards supporting Iran's network of terrorist proxies across the Middle East, including Hamas, which is currently engaged in open conflict with Israel, America's closest ally in the region.

October 15, 2023

Jason Brodsky, Policy Director at United Against Nuclear Iran (UANI), told the DCNF, "UANI estimates that Iran has generated around $80 billion in revenue from oil sales defying U.S. sanctions under the Biden administration because of lax enforcement. That is a policy choice by the Biden administration … inevitably, this resources Tehran’s proxies and partners, and therefore China helps fund this aggression."

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Data intelligence firm Kpler's analysts stated in August that China was purchasing about 1.5 million barrels per day of sanctioned Iranian oil, according to Bloomberg News. This represents the highest volume of Iranian oil imports to China in at least a decade. The surge in Iranian oil sales coincides with the Biden administration's more conciliatory approach towards Iran compared to the Trump administration.

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Analysts at ClearView Energy Partners recently told S&P Global Commodity Insights, "We have suggested that this recent surge in Iranian crude and condensate export volumes could be ascribed to rapprochement between Washington and Tehran via discretionary enforcement of U.S. sanctions."

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The primary attraction for Chinese businesses to import Iranian oil is its discounted price due to the sanctions against it, according to Bloomberg. This appeal is further amplified by the high oil prices worldwide.

The Iranian government interacts with its terrorist proxies through the Islamic Revolutionary Guard Corps (IRGC), a State Department-designated terrorist organization. Robert Greenway, director of the Heritage Foundation’s Center for National Defense and an architect of the Trump administration’s Iran sanctions, told the DCNF, "The facts are indisputable, China is the principal customer of Iranian oil. It’s in contravention to sanctions we are enforcing. I can tell you that the IRGC benefits directly from oil sales in about ten different ways."

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However, a spokesperson for the National Security Council (NSC) refuted the claim that the Biden administration is not enforcing sanctions against Iran. The spokesperson stated that the administration has administered 47 separate Iran sanctions roll-outs targeting 465 individuals and entities, and there are no plans to lift, waive, or provide any new sanctions relief for Iran.

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Reports regarding Iran's involvement in the Hamas attacks against Israel, which resulted in at least 1,200 murders, numerous rapes, child decapitations, and abductions, have been conflicting. While The Wall Street Journal reported that Iranian personnel supported and assisted the attacks, the White House stated that it has not yet identified any evidence that proves Iranian involvement.

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John Kirby, NSC spokesman, told reporters, "Without getting into specifics, I can tell you that we are constantly reviewing our regime sanctions against Iran." The U.S. government has long designated Iran as the world’s "leading state sponsor of terror."

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The Biden administration's approach towards the CCP appears to be more amenable than the Trump administration's, particularly in finding common ground on climate change policies, according to Reuters.

Richard Goldberg, a senior advisor for the Foundation for Defense of Democracies and former director for Countering Iranian Weapons of Mass Destruction for the NSC during the Trump administration, told the DCNF, "There is no appetite to sanction China or to enforce sanctions on Iran within the Biden administration. The idea that Kirby can say with a straight face that we are enforcing our sanctions, it is simply not true, not rational and not possible."

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Goldberg continued, "We are not doing any sanctions enforcement right now, quite intentionally, because it is part of the give to Iran to entice them to stop short of developing a nuclear weapon." This statement references reports that some members within or closely connected to the Biden administration were engaging in negotiations with Iranian officials to rekindle some version of the scrapped 2015 Iran nuclear deal. "The Iranians think they have the White House where they want them."