Sequential sanctions on businesses and tankers that Tehran is said to be supporting are ultimately slowing down Iran’s oil flow to China as costs rise and more traders are forced to engage in dangerous efforts to avoid US measures.
According to executives of Chinese private refiners, who are buyers of most of Tehran’s cargo, in recent weeks, shipments have been destroyed midway through sellers’ defaults. They said no specific reasons were provided, but they condemned logistical challenges and neared the supply chain with higher costs.
Some Iranian tankers are approved on the way to their destination, executives said. They asked not to identify the argument as private.
Trade with China has long been its biggest oil buyer and a financial lifeline for Tehran, with Washington increasingly focused on cutting. It covers more than two-thirds of the roughly 150 ships that processed Iran’s crude oil shipments in 2024, according to data analytics firm KPLER.
China is unaware of unilateral sanctions and has repeatedly defended its right to trade with Iran. But the reality of the vast US financial system means that ports and shipping companies with links outside the mainland are reluctant to deal with approved entities and vessels, particularly as US President Donald Trump promises stricter enforcement.
Earlier this year, Shandong Port Group, which serves the state, a hub of private refiners, urged operators to reject blacklist tankers.
MNA