Iran oil supplies to China face pressure amid US sanctions

The supply of Iranian oil to Chinese refineries is facing significant pressure as immediately available stocks are rapidly depleting. This trend follows the reintroduction of US sanctions in mid-July, which have effectively targeted Iranian ports and created a growing fleet of stranded vessels. According to Kpler, approximately 40 million barrels of crude oil are currently near Singapore, with only 10% of that volume remaining uncollected. Additionally, at least 41 million barrels are reportedly stuck in vessels within the Persian Gulf.

This shortage is impacting market prices, with offers for ‘Iranian Light’ crude rising significantly above the ICE Brent benchmark. Analysts suggest that buyers may face a substantial lack of new Iranian supplies starting in late September.

In parallel, the United States is preparing to intensify economic measures. US Treasury Secretary Scott Bessent has committed to implementing what he described as the ‘greatest coordinated economic blockade in global history’ against Tehran. President Donald Trump has also signaled an intent to conduct a crushing economic campaign aimed not only at Iran but also at any nation conducting significant trade with the Islamic Republic, seeking to achieve maximum economic isolation.