Iranian Crude Oil Continues To Find Its Way To China Despite US Sanctions

Several Chinese ports have reportedly received millions of barrels of Iranian crude this year, undermining U.S. efforts to block Tehran’s oil revenue.

Between January and June, China imported 1.4 million barrels per day of crude oil through major terminals in the port clusters around Qingdao, Dalian, and Zhoushan, Bloomberg reported on Tuesday, citing data from commodity intelligence firm Kpler.

According to the report, ports around the eastern city of Qingdao received as much as 15.5 million barrels of Iranian crude, equivalent to approximately $1 billion at current prices for the discounted oil, with sanctioned tankers used in various legs of the journey from the Persian Gulf to China. Other ports, such as Dongjiakou and Lanqiao, are also importing Iranian crude.

Retail sentiment on Stocktwits about the iShares MSCI China ETF (MCHI) was in the ‘Neutral’ territory at the time of writing.

While Beijing officially does not recognize the sanctions, major Chinese businesses avoid dealing with sanctioned companies as it would risk their international expansion plans. Oil from Iran is typically transported from Iran to Malaysia or another transfer point, where it is moved from one tanker to another at sea. China has not officially purchased any crude oil from Iran since 2022.

While the Trump administration has been strict about the Iranian nuclear program, including carrying out airstrikes against the facilities, the Trump administration has given mixed signals about Iranian oil.

Last month, the U.S. President said that China could continue buying oil from Iran amid the announcement of a truce with Israel in the 12-day war.

“China can now continue to purchase Oil from Iran. Hopefully, they will be purchasing plenty from the U.S., also. It was my Great Honor to make this happen!” Trump said in a post on Truth Social.

The U.S. Treasury Department has sanctioned several Chinese entities, primarily tankers, for violating sanctions. However, it has not stepped in against major Chinese ports or oil refineries. Iran produces approximately 3.3 million barrels of oil per day, with the majority of it being exported to China.

Both West Texas Intermediate crude and brent crude futures rose slightly on Wednesday.

Also See: Ovintiv Stock Rises As Goldman Sachs Sees ‘Meaningful Discount’ Compared With Oil Peers

For updates and corrections, email newsroom[at]stocktwits[dot]com.