US Sanctions Cut Iran-China Oil Trade by 40%

The US Treasury Department has announced that its campaign to reduce Iran's oil revenue is showing results in China. According to a statement from Treasury Secretary Scott Bessent, Chinese purchases of Iranian crude have declined significantly after Washington expanded sanctions on independent Chinese refiners, known as teapot refineries.

These refiners were historically the main buyers of discounted Iranian oil. As a result, China's crude purchases from Iran have fallen by approximately 40% over the past several months, creating direct financial pressure on Tehran.

This decline in Chinese demand removed a major source of global market demand at a time when more than 10 million barrels per day of Middle Eastern supply had been removed from normal trade flows. The situation also helped prevent oil prices from rising further.