Iran and China Use Barter to Bypass Sanctions

Iran utilized a secretive barter-like mechanism exchanging oil for credits to buy billions in Chinese goods, including military gear. The system shielded companies from international penalties while maintaining trade despite strict U.S. sanctions.

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FILE PHOTO: Iranian President Masoud Pezeshkian and Chinese President Xi Jinping shake hands as they meet in Beijing, China, September 2, 2025. Iran's Presidential website/WANA (West Asia News Agency)/Handout via REUTERS/File Photo

Iran has channeled billions of dollars in oil revenue through a secretive barter-like arrangement with China, securing vital imports despite pressure from the United States. The mechanism bypasses international banking channels to keep trade flowing.

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