US Sanctions on Iran Spark Spotlight on China Oil Buying

The US has renewed its blockade of Iran's ships and ports in an effort to cut off oil sales, prompting China's oil buying from Tehran into focus.

China, the largest buyer of Iranian oil, saw shipments drop to 785,000 barrels per day in June, the lowest since February 2023. Although they may have risen in July to 823,000 bpd, the intake so far in August has dropped to 534,000 bpd.

Chinese independent refiners are the main Iranian crude buyers, attracted by a steep discount to mainstream barrels. However, state refiners have shunned Iranian oil since 2019, when the US reimposed sanctions on Tehran, and China's official customs data does not show any purchases of Iranian crude.