US Sanctions Throttle Iran's Crude Oil Exports to China

China's crude oil purchases from Iran have come under scrutiny as the US threatens heavy economic sanctions on Tehran. According to ship-tracking firm Kpler, China averaged 1.4 million barrels per day of Iranian oil imports last year.

In recent months, however, shipments have fallen significantly due to US efforts to cut off oil sales. In June, imports dropped to 785,000 barrels per day, the lowest since February 2023. While provisional data suggests a slight increase in July, imports plummeted to 534,000 barrels per day in August.

Chinese independent refiners have been the main buyers of Iranian crude, attracted by steep discounts compared to mainstream barrels. State-owned refiners, however, have shunned Iranian oil since 2019 when US sanctions were reimposed on Tehran.

The US has intensified efforts to curb Chinese purchases of Iranian oil, imposing sanctions on smaller Chinese refiners and other participants in the supply chain. While sanctions have been effective in some cases, overall flows of Iranian oil into China remain unaffected. China has rejected unilateral sanctions, calling for a resolution through diplomatic means.