Iran has long taken enormous pride in its ability to side-step the sanctions against oil exports imposed by the West. At the start of the process, sanctioned Iranian oil is labelled as non-sanctioned Iraqi oil by dint of the fact that several of both neighbouring countries’ oil production comes from oil fields that sit atop the same oil reservoirs. From the point when it is re-branded to Iraqi oil, Iranian oil then needs to be shipped where it is required, which is still mainly China. Related: Norwegian Offshore Oil and Gas Production Surges Past ExpectationsIraq’s plan with Oman has further benefits for Iran. This step-up in action also includes the key backer of Iran and Iraq – China – some of whose trading firms were included in the U.S. State Department’s latest announcement on Iran-related sanctions.