Amid escalating U.S. economic pressure against the Islamic Republic, Iranian crude oil supplies to Chinese buyers have fallen dramatically alongside a rise in prices, a shift that threatens to deal a severe blow to Tehran’s foreign exchange revenues.
Citing four commercial trade sources, Reuters reported that Iranian oil offers for September and October delivery have dropped sharply compared with July and August volumes. Traders also reported price increases, with one source indicating that Iranian crude offers have risen by approximately $2 per barrel.
According to Reuters, a key factor behind the supply drop is the drawdown of Iranian oil stored at sea. Iran’s floating crude reserves, which previously peaked at roughly 105 million barrels, have now declined to about 80 million barrels, with only around 30 million barrels remaining in Asian waters.
Iran has relied heavily on China in recent years to sell its sanctioned crude, with independent refiners, known as “teapots,” serving as the primary buyers. However, diminishing availability has forced these refiners to seek alternative suppliers, turning to producers in Iraq and Brazil.
Data shows a clear decline in China’s reliance on Iranian oil. Chinese imports of Iranian crude, which averaged around 1.4 million barrels per day in 2025, have dropped to approximately 534,000 barrels per day.
