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
24 June 2025
The country’s latest licensing round attracted bids from IOCs and NOCs in a better showing than its last outreach to bidders
24 June 2025
Africa’s second-largest oil producer is creating the right conditions for the sector to try to boost output, explains Ian Cloke, COO of UK-based Afentra
24 June 2025
The takeover, if it gets the all-clear from regulators and other government authorities, would propel XRG and its parent firm ADNOC into the top tier of global LNG players
23 June 2025
Jet fuel will play crucial role in oil consumption growth even with efficiency gains and environmental curbs, with geopolitical risks highlighting importance of plentiful stocks
