Iran-China Oil Exports Plummet Amid US Blockade

Iran's oil exports to China have been significantly impacted by the US blockade imposed on July 13, following the collapse of a peace deal. The blockade has effectively stifled Iran's primary oil sales, which were already struggling due to earlier damage to its energy infrastructure from war-related activities.

The offers for September and October deliveries of Iranian crude oil have decreased compared to those in July and August as pre-loaded barrels are being sold off. This decline is evident in the data provided by ship-tracker Kpler, which shows that no supertankers carrying Iranian crude have crossed the Strait of Hormuz since mid-July.

As a result, independent refiners, or 'teapots', in China's Shandong province are facing pressure on their feedstock supply. In response to this crisis, some teapots are exploring alternative oil sources, including Brazilian and Iraqi crude.