- China continues to rely heavily on Iranian oil imports, with independent refiners accounting for the majority of the volume.
- Recorded offshore stocks in Iran reflect the influence of China’s oil imports from Iran and U.S. sanctions on Tehran’s oil trade.
China relies heavily on Iranian oil imports, leaving it particularly exposed to supply disruptions. Data show that China buys more than 80 per cent of Iran’s exported crude. Independent refiners in Shandong province take the largest share. Meanwhile, the United States maintains sanctions aimed at limiting Tehran’s oil revenue and curbing its nuclear programme.
To begin with, China is the world’s largest crude oil importer and the leading buyer of Iranian oil. Independent Chinese refiners, often referred to as “teapots,” drive most of this demand. They prefer discounted Iranian crude over more expensive non‑sanctioned alternatives.
In 2025, these refiners imported approximately 1.38 million barrels per day of Iranian oil. This represented roughly 13.4 % of China’s total seaborne oil imports that year.
Moreover, the discounts on Iranian oil make it highly attractive. Traders report that Iranian Light crude often trades $8 to $10 per barrel below ICE Brent on a delivered basis to Chinese ports. Consequently, refiners save significantly when they choose Iranian barrels over other crude.
As a result, teapot refiners continue buying this cheaper oil, despite narrow or sometimes negative profit margins. They also face pressure from weak domestic demand.
However, official Chinese customs data have not recorded direct oil imports from Iran since mid‑2022. This occurs because most Iranian oil shipped to China is relabelled as coming from countries such as Malaysia or Indonesia. Meanwhile, major state‑owned Chinese oil companies have avoided buying Iranian crude directly since 2018–2019. They do so to minimise the risk of violating sanctions.
Additionally, Iran has accumulated record volumes of oil stored at sea, sufficient for approximately 50 days of production. This build‑up reflects China’s reduced purchases due to tighter import quotas and the risk of sanctions. Tehran also seeks to protect its supplies amid broader geopolitical tensions, including potential U.S. military action.
At the same time, new U.S. policies have sparked debate. Washington has threatened to impose stricter penalties on countries that continue to trade with Iran. Nevertheless, Beijing rejects unilateral sanctions. The Chinese government maintains that its trade with Tehran is lawful and mutually beneficial.