BICOM

China has vowed to defy US sanctions after the Trump administration announced on Monday it would not renew waivers from sanctions on buyers of Iranian oil.

Chinese Foreign Ministry spokesman Geng Shuang said: “The normal energy cooperation under the international law between Iran and other members of the international community, China included, is legitimate and lawful; thus it must be respected and protected.”

The waivers expire on 2 May, at which point companies that buy Iranian oil could be blacklisted by the Treasury Department. Chinese oil companies are among Iran’s biggest customers and the Foreign Ministry has lodged a formal protest with the US over the decision, saying the sanctions are an example of Trump trying to dictate international policy toward Iran, backed by the muscle of the US financial system.

Shuang added: “The decision from the US will contribute to volatility in the Middle East and in the international energy market.”

Brian Hook, the US Special Representative for Iran, told reporters on Tuesday that the US would “sanction any sanctionable behaviour”. But when asked if that included Chinese companies, he responded: “I didn’t say that.”

Mohammad Javad Zarif, Iran’s Foreign Minister, tweeted: “Escalating #EconomicTerrorism against Iranians exposes panic & desperation of US regime — and chronic failure of its client co-conspirators.” Iran’s oil minister, Bijan Namdar Zanganeh said: “The US dream of bringing down Iran’s oil exports to zero will not materialise.”

Eight countries were granted waivers by the US. Greece, Italy, Japan, South Korea and Taiwan have already ended or heavily reduced their oil purchases from Iran. China, India and Turkey buy most of Iran’s oil, which currently produces one million barrels per day.

Dharmendra Pradhan, India’s minister of petroleum and natural gas, said his government had already: “Put in place a robust plan for adequate supply of crude oil to Indian refineries”.

US officials believe that Gulf Arab states hostile to Iran will sell extra oil to offset the loss of Iranian supplies. Saudi Arabia’s Foreign Minister says the kingdom “fully supports” the US decision and called it a: “Necessary step to make the Iranian regime stop its destabilising policies and sponsoring terrorism around the world.”