Iranian Oil Offers to China Fall as US Blockade Squeezes Exports

BEIJING/DUBAI, Aug 21: Offers of Iranian crude to Chinese buyers have fallen sharply while prices have surged as a U.S. blockade restricts Tehran’s oil exports, Reuters reported Friday, citing four trade sources.

Tightening supply has reduced the availability of Iranian crude for September and October deliveries, forcing some Chinese independent refiners to seek alternative supplies, including oil from Brazil and Iraq.

According to Kpler data cited by Reuters, Iranian crude stored on tankers outside the blockade zone has fallen to about 80 million barrels, from roughly 105 million barrels before the blockade was reimposed on July 13.

The squeeze has also pushed Iranian crude prices higher. Oil that normally trades at a discount was being offered at a premium of about $2 a barrel to Brent, Reuters reported.

China remains Iran’s largest crude oil buyer, accounting for more than 80% of Iran’s shipped oil last year. However, Kpler data showed Chinese imports of Iranian crude had fallen to about 534,000 barrels per day in August, compared with an average of 1.4 million bpd in 2025.

The decline highlights the growing impact of the U.S. blockade on Iran’s ability to move its most important source of export revenue. At the same time, Chinese refiners face increasing difficulty securing Iranian supplies.

The latest developments come as Washington intensifies economic pressure on Tehran, with U.S. officials threatening further sanctions and seeking to tighten restrictions on Iran’s oil trade.