Posts

Showing posts from July, 2020

Iranian Oil will Flow to China, despite sanctions

Why is China in Iran? With the recent Chinese investment in Iran, the Chinese have isolated their oil supply line from external forces and interdiction. The Chinese have a framework agreement with the Iranians that they would invest $ 400 billion in cash starved Iran over the next 25 years. On the very next day of this investment Iran informed that it would be going ahead with building the rail network connecting Shaheed Behesti port at Chahbahar in Sistan Baluchistan province of Iran. With time the Chinese will be able to connect their oil purchases in Iran to the CPEC corridor that they are building in Pakistan. Once this is done oil from Iran would be easily piped round the clock throughout the year from Iranian oil wells to Pakistan and from there on to China. The Chinese navy can then be adventurist at sea. The other navies cant use the card that much needed oil from gulf can face logistical challenge. As for the sanctions on Iran. China doesn't care. China need not care for U...