China’s imports of Iranian crude fell by nearly a third in July from the previous month as demand from private refiners eased, Bloomberg reported on Tuesday citing data from intelligence firm Kpler.
Purchases fell to about 1.2 million barrels per day, nearly 30 percent lower than in June and slightly below the year-ago level, the firm said.
June surge fades
The pullback follows a sharp rise in June, when shipments reached more than 1.7 million barrels per day, the highest since March, according to Vortexa.
Emma Li, senior market analyst at Vortexa, said sellers accelerated deliveries ahead of possible supply disruptions linked to the brief Iran-Israel conflict. She said the rush reflected a strategy to front-load supplies amid uncertainty about further attacks.
Independent refiners, known as “teapots,” drove much of the June demand but have since slowed restocking, Bloomberg quoted Kpler senior crude analyst Muyu Xu as saying. Xu said demand from teapots is “far from robust” after their higher imports in June and that some refiners face a tight crude‑import quota.
US sanctions pressure grows
The slowdown in shipments comes as the United States has stepped up enforcement of sanctions targeting Iran’s oil trade.
The US Treasury said last week it imposed measures against a fourth Chinese oil terminal alleged to handle sanctioned Iranian crude.
The announcement followed broader sanctions on more than 50 individuals, entities, and vessels tied to what the US Treasury described as a “shipping empire” connected to Hossein Shamkhani, son of a senior adviser to Iran’s Supreme Leader.
Discounted oil still flows
China remains the largest buyer of Iranian crude, which is sold at steep discounts to Brent and typically flows through private channels in defiance of US sanctions. Vortexa said in June that discounts averaged about four dollars per barrel below Brent futures, compared with two dollars per barrel below Brent futures in May.
Despite repeated US sanctions, CBS said China is believed to take up to 90 percent of Iran’s crude exports, much of it bound for teapot refiners.
Official Chinese customs data, which often shows negligible or zero Iranian imports, is due this week.
Outlook uncertain
Iran’s export capacity is constrained by aging oil fields, rising domestic demand, and low investment.
A confidential Iranian Oil Ministry report seen by Iran International said Tehran averaged 1.4 million barrels per day in oil and condensate exports to China in the first half of 2025, down 12 percent from last year.
Homayoun Falakshahi, senior energy analyst at Kpler, said even with sanctions fully lifted, daily exports would likely not exceed 1.7 million barrels.
