US Sanctions Threaten to Disrupt China's Iran Oil Purchases

The US has threatened to impose heavy economic sanctions on Iran, putting its oil sales in the spotlight. China, which has been the largest buyer of Iranian oil for several years, has seen its purchases dwindle due to US efforts to curb Tehran's revenue.

Last year, China imported an average of 1.4 million barrels per day from Iran. However, following a renewed blockade of Iran's ships and ports on July 13, shipments have fallen significantly. In June, imports dropped to 785,000 barrels per day, the lowest since February 2023.

Chinese independent refiners have been the main buyers of Iranian crude, attracted by a steep discount compared to mainstream barrels. However, major Chinese state refiners have shunned Iranian oil since 2019, when the US reimposed sanctions on Tehran.