Bloomberg: Sanctions on Companies and Tankers Have Slowed Oil Flow from Iran to China

Bloomberg reports that several rounds of new sanctions against domestic companies and tankers involved in transferring Iranian oil have "slowed down" the flow of oil from Iran to China. The report, published on Saturday, March 9, indicates that the oil flow from Iran to China has diminished due to "increased costs and risks" associated with trading with Tehran. According to "managers of several private refineries in China" who are major buyers of Iranian oil, loading oil from the seller has been "disrupted" in recent weeks. These managers, who have not been given a specific reason for this occurrence, suggest that "logistical difficulties and higher costs" could be the cause. Tracking statistics of oil tankers, as reviewed by Radio Farda, confirm this situation. The statistics show that although Iran is trying to maintain and even increase the volume of oil loading (exports), the volume of oil discharged from Iran at Chinese ports has significantly decreased since January compared to previous months. Since October of this year, when the U.S. intensified sanctions on tankers involved in Iranian oil exports, the average daily discharge volume of Iranian oil at Chinese ports has drastically fallen, dropping from over 1.7 million barrels in summer to 1.3 million barrels in autumn, with this decline continuing into the current winter. Statistics from the company Vortexa estimate the volume of oil delivered to China from Iran over the past two months to be about one million barrels per day, while the company Kpler estimates this figure at around 700,000 barrels. The United States imposed financial sanctions on an international network accused of transferring Iranian oil to China on Thursday, February 7, as the first sanctioning action of Donald Trump's second administration. Trump signed an order in mid-February to revive the so-called "maximum pressure" policy against Iran, aiming to reduce Iranian oil exports to "zero" if implemented. Additionally, Reuters reported last week on a potential U.S. plan to stop and inspect ships carrying Iranian oil in international waters as part of a global agreement under the theme of countering the proliferation of weapons of mass destruction. Reuters sources indicated that stopping and inspecting tankers carrying Iranian oil would delay shipments to Chinese customers and expose parties involved in Iranian oil transactions to potential damage to their credibility and possible sanctions.