The United States’ real strategic competition is not primarily with Iran or Venezuela — it is with China.
For years, China has secured large amounts of discounted crude oil from countries under U.S. sanctions, particularly Iran and Venezuela. These energy partnerships have been economically important for Beijing.
China has been the largest buyer of Iranian oil, purchasing a significant portion of Iran’s exports despite sanctions. Estimates suggest that around 13–14% of China’s seaborne crude imports come from Iran, with many shipments sold at discounted prices compared to global benchmarks.
China has also imported oil from Venezuela, although at a smaller level — roughly 4% of China’s crude imports in recent years.
Because of sanctions, some of this oil trade has been conducted through complex shipping networks and intermediaries to avoid restrictions.
Another important aspect is currency. Some of these transactions have been carried out using China’s yuan instead of the U.S. dollar, which some analysts believe could gradually challenge the dominance of the dollar in global energy trade.
Overall, sanctioned oil from Iran, Venezuela, and Russia combined may account for more than 20% of China’s crude imports, giving Chinese refiners access to cheaper supplies.
These dynamics are part of a broader geopolitical struggle. The United States wants to maintain its economic and financial influence globally, while China is trying to expand its own economic power and reduce reliance on the U.S. dollar.
As tensions rise in regions like the Middle East, energy routes such as the Strait of Hormuz and access to oil reserves become strategically important not just for regional conflicts, but for the wider competition between global powers.
In that sense, many analysts see the tensions around Iran, Venezuela, and energy markets as connected to the larger strategic rivalry between the United States and China.