Crude Edges Higher as Supply Concerns Outweigh Economic Outlook

This marks a clear escalation in sanctions policy, though not as severe as if a Chinese port had been designated,

said Brian Leisen, commodities strategist at RBC Capital

Our regular client appeared nonchalant when I shared the sanction document translated into Chinese late last night and carried on asking for the latest Iranian oil quotes,

the trader said

But once companies re-adjust their business structures, imports would continue,

said the executive, referring to measures such as changing entities for oil payments

Iranian crude accounts for around 15 percent of China's overall oil imports. What Trump has done is put Chinese energy security in his crosshairs. This was a significant step for Trump's maximum pressure policy on Iran. But it's arguably even more significant in the context of economic competition between China and the U.S."

Esfandyar Batmanghelidj, CEO of the Bourse & Bazaar Foundation, told Newsweek

Purchases by small, independently run oil refineries in China provide the primary economic lifeline for the Iranian regime."

Treasury Secretary Scott Bessent stated

In January, we broke the record for oil exports in over a decade; we are announcing this news to make our people happy."

Iranian Oil Minister Mohsen Paknejad said

This marks the first time the U.S. has ever sanctioned a Chinese oil refinery, in doing so, the Trump administration is trying to send a signal to Iran's oil customers in China,

Esfandyar Batmanghelidj, CEO of the Bourse & Bazaar Foundation, an economic think tank that tracks Iran's oil, told Newsweek

China has always been firmly opposed to illegal and unjustifiable unilateral sanctions and so-called long-arm jurisdiction by the US,

said a spokesperson for the Chinese embassy in Washington

Tammy Brucestate Department spokesperson

These sanctions are being imposed pursuant to President Trump's maximum pressure campaign to drive Iran's oil exports, including to China, to zero,

State Department spokesperson Tammy Bruce said in a statement

The strategy appears to target China as a means to pressure Iran - applying only minimal pressure for now while gradually increasing efforts to bring Iran to a nuclear deal,

said Scott Modell, chief executive of Rapidan Energy, a research group