China Has Reduced Iranian Oil Purchases

WASHINGTON, Jul 21: US Treasury Secretary Scott Bessent said Tuesday that China has significantly reduced its purchases of Iranian oil, adding that the decline is putting pressure on Tehran’s economy.

Speaking in an interview with Fox Business Network, Bessent said US sanctions targeting Chinese “teapot refineries” — privately owned independent oil processors — had contributed to a substantial drop in Iranian crude purchases.

“The Chinese, in general, because of the prices and because they have a very large strategic petroleum reserve, have dropped their purchases of crude over the past few months by about 40%,” Bessent said.

He added that the reduction in oil sales was directly affecting the Iranian government, as Washington continues efforts to restrict Tehran’s oil revenues through sanctions.

China has historically been one of the largest buyers of Iranian crude, despite US sanctions, with much of the trade conducted through independent refiners and alternative payment arrangements.