Iranian Oil Offers to China Plummet as US Blockade Takes Hold

The US blockade on Iranian oil shipments has disrupted Tehran's crude deliveries to China, causing a decline in offers for September and October cargoes. According to trade sources cited by Reuters, four trade sources familiar with the market said that offers for Iranian crude deliveries to China have fallen compared to July and August.

The reason behind this decline is that crude barrels already being transported on ships have been sold, leaving fewer options available for future delivery. This has contributed to higher prices for the remaining cargoes, making it more expensive for Chinese buyers to secure Iranian crude.

China is a major buyer of Iranian oil, and any reduction in shipments could put pressure on Iran's oil trade, particularly if US restrictions continue for an extended period. Tehran has condemned the US measures, describing them as 'economic terrorism', and strongly rejecting restrictions targeting its shipping and oil exports.