Letter from Iran: US sanctions cut off crude supply line
Deliveries to China decline by around 1m b/d from move to curb crude exports to Shandong port, putting Iran under further economic pressure
China’s Shandong Port Group made a significant move in January by privately instructing its ports to ban vessels sanctioned by the US Office of Foreign Assets Control (OFAC). The directive comes after a surge in sanctioned crude tankers visiting key Chinese terminals, raising concerns about potential disruptions in supply for independent Chinese refiners, or ‘teapots’. These refiners have relied on discounted Iranian crude, especially since 2020 when flows from Iran to China started to ramp up, and such restrictions could worsen the challenges Iran faces in its oil export operations. Iran’s oil deliveries to China have sharply declined, according to recent data. Volumes dropped below 850,000
Also in this section
12 December 2025
The federal government is working with Alberta to improve the country’s access to Asian markets and reduce dependence on the US, but there are challenges to their plans
12 December 2025
The latest edition of our annual Outlook publication, titled 'The shape of energy to come: Creating unique pathways and managing shifting alliances', is available now
11 December 2025
The removal of the ban on oil and gas exploration and an overhaul of the system sends all the right messages for energy security, affordability and sustainability
10 December 2025
The economic and environmental cost of the seven-year exploration ban will be felt long after its removal
