US Blockade Cuts Iran's Oil Lifeline as China Buyers Cut Imports
Iran's oil exports have fallen significantly since mid-July, with no visible crossings of the Strait of Hormuz by supertankers carrying Iranian crude. The US blockade has cut Tehran's shipments, and offers of Iranian crude to Chinese buyers have declined. According to trade sources, the number of offers for Iranian oil cargoes to China for September and October delivery has dropped from July and August cargoes.
The squeeze threatens a key feedstock for independent refiners in China's eastern province of Shandong, which account for about a fifth of China's refining capacity. Some Iranian crude was being offered at premiums to ICE Brent futures, after earlier this week being sold at discounts.
Iranian parliament speaker Mohammed Baqer Qalibaf emphasized the need for Iran to strategize against 'unjust sanctions' following US Treasury Secretary Scott Bessent's announcement of severe new sanctions. He accused the US and Israel of waging economic warfare, saying that their enemies come to plunder Muslim countries' resources.
Qalibaf called for stronger economic ties between Baghdad and Tehran and said the two countries could use their national currencies in trade to reduce reliance on the US dollar. China has rejected unilateral sanctions, but its independent refiners are wary of further sanctions targeting specific buyers.