How does Iran bypass oil sanctions?

According to Energy Press, during the past few days, Reuters reported that despite the sanctions, Iran has found new destinations and customers for its oil. According to this report, despite the continuation of sanctions against Iran, Tehran has found new destinations and customers for small shipments of its crude oil such as Bangladesh and Oman.
The report further states that Iran has achieved the highest export figure in its oil exports in the three-month period from March to May of this year (2024) compared to the same period since 2018, and has set a new record in its oil sales. .
New opportunities, new markets
Iran is one of the countries that was subjected to the most cruel sanctions by the countries of the world. But according to NDTV, the restrictions imposed by the United States have largely failed to prevent the export of Iranian oil, which is considered one of the main pillars of Tehran’s economy.
According to the report, US sanctions have limited Iran’s access to many of its traditional customers. But this issue also has advantages and has caused Tehran to find new buyers, of course, Tehran’s temporary sale of oil is also not without influence in this issue, according to this media report.
Analysts say that China’s willingness to buy unprecedented amounts of Iranian oil, Tehran’s mastery of sanctions-busting tactics, and the reluctance of Washington and its allies, including members of the European Union, to impose tougher sanctions have rendered the White House’s efforts against Iran’s energy exports ineffective.
The lifting of US sanctions as part of the 2015 nuclear deal with world powers allowed Iran to sell its oil to customers in Europe and East Asia. In this regard, oil exports reached their peak in 2018. But after US President Donald Trump pulled out of the nuclear deal later that year, exports fell sharply.
The role of multilateralism in reducing the effect of sanctions
According to reports, the growth of demand for Iranian oil in China has been the key to increasing Iranian oil sales in recent years. Vessel tracking data collected by Argus shows that Iran’s oil exports are currently 1.5 million barrels per day, with about 85-90 percent going to China. Matthew Simmel, professor of applied economics at Johns Hopkins University, says: “Even taking into account the discounts applied by Tehran, the sale of Iranian oil is very profitable and stable. “The reason is that the final cost of production in Iran is approximately $15 or less per barrel.”
On the other hand, energy analyst Grace Brockomawicz believes that US sanctions were once effective in blocking oil exports to China, but no longer, and the parties to the deal have shown that they have found their own ways to circumvent these restrictions. . He added: “China’s growing stature as a new global power gives it more freedom to defy US sanctions.”