Iranian crude oil offers to Chinese buyers fell for September and October delivery. This supply contraction follows a U.S. blockade on Iranian shipping and ports reimposed on July 13.
The blockade successfully curtailed Tehran’s shipments and inverted traditional pricing models. Iranian oil now commands a premium of approximately $2 per barrel over ICE Brent futures. This price level marks a sharp reversal from the previous $3 per barrel discount.
The disruption primarily impacts China’s independent teapot refiners. These facilities are the primary buyers of sanctioned Iranian crude.