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
7 August 2025
Without US backing, the EU’s newest sanctions package against Russia—though not painless—is unlikely to have a significant impact on the country’s oil and gas revenues or its broader economy
6 August 2025
Diesel market disruptions have propelled crude prices above $100/bl twice in this century, and now oil teeters on the brink of another crude quality crisis
5 August 2025
After failed attempts to find a buyer for its stake in Russia’s largest oil producer, BP may be able to avoid the harsh treatment meted out to ExxonMobil and Shell when they exited—and could even restart operations if geopolitical conditions improve
1 August 2025
A number of companies have filed arbitration claims against Gazprom over non-deliveries of contracted gas or other matters—and won. The next step is to collect the award, but this is no easy task
