Oil is a lifeline for the Iranian and Russian economies, a major source of income, but Western sanctions threaten the two countries' ability to ship oil and receive payments. This hinders the flow of oil revenues and creates a major challenge for both economies. In response to the sanctions, Iran and Russia have taken steps to circumvent them, by redirecting oil shipments to China, the world's largest importer of crude oil. This step is an important strategy to maintain the flow of oil revenues and reduce the impact of sanctions on the two economies.

New methods are being used to transport oil, such as “shadow fleet” tankers that operate outside naval bases and take steps to hide their operations. These methods help evade Western censorship systems and facilitate the unhindered transport of oil to its destination. National currencies, such as the Chinese yuan, are used in commercial transactions to avoid Western banks and shipping services, which are subject to sanctions. This strategy helps reduce Iran and Russia's dependence on the Western financial system and facilitates financial transactions without the risk of sanctions.

These strategies undermine the effectiveness of Western sanctions and maintain the flow of oil revenues to Iran and Russia. These strategies enhance the role of the Chinese yuan in international trade and help China achieve its ambitions to internationalize its currency.

China is facing pressure from Western countries to limit its dealings with Iran and Russia. Iran has difficulty using the yuan outside China because it is not freely tradable. Iran and Russia will likely continue to use new methods to circumvent sanctions, with other countries likely to join them.

China will have a greater role in international trade with the increasing use of the yuan in international transactions. New tools are being used to evade sanctions, such as barter, investment in infrastructure, and the creation of new banks. The West is trying to address sanctions evasion by imposing secondary sanctions on countries and companies that do business with Iran and Russia, increasing pressure on China, and searching for new tools to combat sanctions evasion.