Monday, June 23, 2025
Friday, June 20, 2025
Israel–Iran Conflict May Jeopardize China’s $400 Billion Deal With Iran
Smoke rises after a reported Israeli strike on a building used by Islamic Republic of Iran News Network, part of Iran's state TV broadcaster, in Tehran, Iran, on June 16, 2025. Over recent days, Iran has been hit by a series of Israeli airstrikes targeting military and nuclear sites, as well as top military officials, prompting Iran to launch a counterattack. Photo by Stringer/Getty Images
As the Israel–Iran conflict intensifies, China’s reliance on cheap oil from Iran and its $400 billion deal with the Islamic regime may be in jeopardy.
If the Iranian regime is toppled, analysts say, the Chinese communist regime will not only face an economic blow, but its expansionist global strategy that involves using the Middle East as a frontier to contain the West also will be thwarted.
Currently, more than 90 percent of Iran’s oil exports flow to China, the world’s largest oil importer, according to Kpler, an international trade data provider.
Iran’s crude oil exports have been sanctioned by the international community because of concerns about Iran’s developing nuclear weapons. Nevertheless, many small refineries in China have been buying illicit Iranian oil at a cheaper price than the standard market price.
Because of the sanctions, Iran has almost no other buyers apart from China, so it is at a disadvantage in pricing. In 2024, a senior official from the Iran Chamber of Commerce called the China–Iran trade relationship a “19th-century colonial trap,” saying that China also “dictates how payments are made.”
Iran’s crude oil is paid for in Chinese renminbi instead of U.S. dollars, leaving Iran with the need to purchase large quantities of Chinese goods, which further exacerbates its economic dependence on China.
SBM to become first FPSO operator in Suriname with TotalEnergies contract win
SBM Offshore has signed an operations and maintenance contract with TotalEnergies for the FPSO GranMorgu, as part of the field development project located in Block 58 in Suriname.
The operations and maintenance contract covers the operation readiness phase before first oil as well as the operations and maintenance services for a minimal period of two years after first oil with extension options.
"This contract reinforces SBM Offshore’s long-term strategic partnership with TotalEnergies and marks a significant milestone as SBM Offshore becomes the first FPSO operator in Suriname," SBM stated in a news release on Thursday. "It is a testimony to SBM Offshore’s focus on excellence throughout the entire project’s lifecycle, from the allocation of our eighth Fast4Ward® MPF hull to our extensive experience in asset management supporting TotalEnergies’ operations."