The Price of Iran's Export Oil to China Reaches Highest Level in Recent Years

Economic sources say that the price of crude oil exported by the Islamic Republic of Iran to China has reached its highest level in recent years. Reuters, citing its sources, reported that the discount offered by the Islamic Republic to Chinese buyers has fallen to its lowest level in the past five years, as concerns over ongoing tensions in the Middle East have led to reduced exports and increased prices. After the re-imposition of U.S. sanctions, the Islamic Republic had offered its crude oil at significant discounts to encourage private Chinese refineries, which are less cautious than the state sector in energy transactions. The Iranian Ministry of Oil did not respond to Reuters' request for comment. Two informed sources told Reuters that each barrel of Iranian crude oil for delivery in November and December of this year was sold to Chinese buyers at discounts of $3.80 and $3, respectively. This discount had previously been in double digits and later decreased to $5 or $6. According to the report, concerns about a potential Israeli attack on Khark Island, Iran's main oil export hub, have led to reduced loading and increased oil prices. Meanwhile, the rising price of Saudi oil exports has also contributed to the increase in Iranian oil prices. Analysts say that Iran's oil exports in October of this year decreased by about 340,000 barrels compared to the previous month. Ongoing tensions in the Middle East and a pipeline leak at the Khark Island port were the main reasons for the slowdown in loading. At the same time, difficult economic conditions in China have caused significant problems for private refineries in that country, leading them to purchase less oil from Iran. Reuters noted that the Islamic Republic often sells its crude oil through intermediaries, labeling it as oil from Malaysia, Oman, or other countries to circumvent U.S. sanctions. China has repeatedly defended its oil trade with the Islamic Republic as 'legitimate and in accordance with international law.' A member of parliament announced a definitive increase in gasoline prices next year. A report from the Washington Post discussed potential Israeli targets for attacks on military, oil, and nuclear facilities in Iran. Exclusively, the U.S. State Department rejected statements from two Republican senators regarding violations of Iran's oil sanctions. Workers at several South Pars gas refineries went on strike in the eleventh week of protest Tuesdays.