U.S. Says China Has Slashed Iranian Oil Purchases by 40%
Says China Has Slashed Iranian Oil Purchases by 40% What I Cover Julianne Geiger is a veteran energy journalist and market analyst with more than a decade of experience covering the global oil and… The United States says its campaign to choke off Iran's oil revenue may finally be showing results where it matters most: China.
Treasury Secretary Scott Bessent said Tuesday that Chinese purchases of Iranian crude have fallen sharply after Washington expanded sanctions on the country's independent "teapot" refiners, which have long been the primary buyers of discounted Iranian barrels.
Speaking to Fox Business, Bessent said China's crude purchases have dropped by about 40% over the past several months, putting direct financial pressure on Tehran.
"We've seen a substantial decrease in their purchases of Iranian oil," Bessent said.
China has been buying less crude from just about everyone since the Iran war erupted.
Faced with $100-plus oil earlier this year and severe disruptions through the Strait of Hormuz, Beijing leaned on the enormous stockpile it built before the conflict instead of chasing expensive cargoes.
Official customs data showed June crude imports plunged to their lowest level since 2016.
That retreat removed one of the biggest sources of demand from the global market just as more than 10 million barrels per day of Middle Eastern supply disappeared from normal trade flows.
It also helped prevent oil prices from climbing even higher.
Iran felt the pain more than most because China has been the largest destination for its sanctioned crude.
Whether that relief for oil markets lasts is another question.
Analysts have been warning that China's buying slowdown was never likely to be permanent.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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