Letter from Iran: US sanctions cut off crude supply line
Deliveries to China decline by around 1m b/d from move to curb crude exports to Shandong port, putting Iran under further economic pressure
China’s Shandong Port Group made a significant move in January by privately instructing its ports to ban vessels sanctioned by the US Office of Foreign Assets Control (OFAC). The directive comes after a surge in sanctioned crude tankers visiting key Chinese terminals, raising concerns about potential disruptions in supply for independent Chinese refiners, or ‘teapots’. These refiners have relied on discounted Iranian crude, especially since 2020 when flows from Iran to China started to ramp up, and such restrictions could worsen the challenges Iran faces in its oil export operations. Iran’s oil deliveries to China have sharply declined, according to recent data. Volumes dropped below 850,000
Also in this section
23 March 2026
A complex and sometimes contradictory web of factors that include unpredictable oil prices, the globalisation of LNG markets, the expansion of Middle Eastern sovereign capital and the growth of datacentre demand will shape the energy landscape beyond 2026
23 March 2026
The Strait of Hormuz crisis highlights how key waterways can become global chokepoints
20 March 2026
Attacks on key oil and LNG assets across the Gulf mean a prolonged supply disruption, with damage to Qatar’s export capacity undermining confidence in the global gas system
20 March 2026
The US may be systemically stripping Russia of key geopolitical allies, but Moscow can reap rewards from the Hormuz crisis, both in the short and long term
