Iran used a barter-like mechanism exchanging oil for credits on Chinese imports to buy billions in goods while limiting direct bank exposure, Reuters reported in a Sep. 10 exclusive citing two senior Iranian sources and three other people familiar with the matter. Sources estimated $2 billion to $2.5 billion flowed through a special-purpose vehicle over the last year; that figure is a sources estimate, not an audited total. Categories cited include medicines, vehicles, and communications gear.
Sources also said the channel was used at least once for air-defense equipment contracts worth millions; Reuters could not independently verify those alleged military-related transactions. Manufacturers were not dealing directly with Iran, and the wire said there is no indication named makers breached sanctions. China’s foreign ministry said it is not familiar with the described arrangement and opposes unilateral sanctions lacking U.N. authorization. A reported mechanism is not a legal finding.
Sources: Reuters exclusive (John Irish, Parisa Hafezi, Joe Cash), Sep. 10, 2026.
