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
21 April 2026
After overcoming a COVID-induced demand collapse with several years of successful market management, geopolitical events have conspired to provide the pact’s biggest test to date
21 April 2026
The regime’s policy of using nuclear ambiguity as a deterrent may have failed but it has realised it has other cards to play, while its neighbours are reappraising their approach to security
21 April 2026
As the global energy system undergoes a fundamental realignment, Algihaz Holdings has established itself as a critical player bridging conventional energy markets and the next generation of renewable infrastructure.
21 April 2026
The 25th WPC Energy Congress is taking place from 11-15 October 2026 at the Riyadh Front Exhibition & Conference Center.
