Iranian Oil Prices Skyrocket Amid Tightening US Blockade

Iran's oil prices have surged as fewer cargoes reach Chinese buyers under a tightening US blockade. According to Reuters, Iranian crude deliveries for September and October have fallen below volumes in July and August. Traders said that sellers have already placed much of the crude shipped earlier, leaving fewer barrels available.

As supplies tighten, Iranian oil that traders offered at discounts is now commanding premiums. This shift follows a decline in Iranian exports since mid-July, when the United States intensified its blockade on the country's oil shipments.

China remains the largest destination for Iranian crude despite years of US sanctions. Pressure on buyers could increase after US President Donald Trump threatened secondary sanctions on Thursday against countries that continue trading with Iran.