China's Heavy Reliance on Iranian Oil Imports China, the world's largest crude oil importer, has long been a key buyer of oil from Iran, a member of the Organization of Petroleum Exporting Countries (OPEC). However, this reliance faces challenges as the U.S. recently issued a 30-day sanctions waiver allowing limited Iranian oil exports, potentially increasing competition and prices for Chinese buyers. The waiver comes amid broader tensions over Iran’s nuclear program and its energy trade. China’s oil imports from Iran have been a strategic choice to reduce costs, especially as the country has also sourced significant volumes from Venezuela and Russia, both of which face Western sanctions. These purchases have helped China save billions of dollars on its import bill in recent years. According to data from the analytics firm Kpler, China accounted for over 80% of Iran’s shipped oil in 2025. Iranian crude has historically had limited buyers due to U.S. sanctions targeting Tehran’s nuclear activities. In 2025, China imported an average of 1.38 million barrels per day of Iranian oil, representing about 13.4% of its total seaborne crude imports, which totaled 10.27 million barrels per day. This volume highlights the scale of China’s dependence on Iranian oil despite international restrictions. The primary buyers of Iranian crude in China are independent refiners, often referred to as “teapots,” based mainly in Shandong province. These refiners are drawn to Iranian oil due to its price discounts compared to non-sanctioned barrels. Teapots account for roughly a quarter of China’s refinery capacity but operate on narrow or negative margins, making them vulnerable to fluctuations in domestic demand for refined products.#iran #china #kpler #organization_of_petroleum_exporting_countries #energy_aspects
