London Daily

Focus on the big picture.
Saturday, Jul 19, 2025

China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions

China has emerged as the primary destination for Iranian oil exports, accounting for approximately 90% of Iran's crude shipments. In March 2025, China's imports of Iranian crude reached an estimated 1.8 million barrels per day, marking the highest level in recent months. This surge was facilitated by independent Chinese refineries, commonly referred to as "teapots," which have been instrumental in processing Iranian oil despite international sanctions.

Impact of Israel-Iran Conflict on Energy Infrastructure

The recent escalation in hostilities between Israel and Iran has led to significant disruptions in energy infrastructure. Israeli airstrikes targeted Iran's South Pars gas field, resulting in damage to multiple units and a partial production shutdown. Additionally, Iran reported attacks on a fuel depot and refinery near Tehran. In retaliation, Iran struck Israel's Haifa oil refinery, leading to its shutdown due to power station damage. These developments have raised concerns about potential impacts on global energy supplies.

Threats to the Strait of Hormuz

Iran has threatened to close the Strait of Hormuz, a critical maritime chokepoint through which approximately one-fifth of the world's petroleum passes. Such a move could hinder oil and gas exports from key Gulf states, including Saudi Arabia and Qatar. Analysts suggest that a closure could lead to a significant increase in oil prices, potentially exceeding $100 per barrel, and cause substantial market volatility.

U.S. Sanctions and Their Implications

The United States has intensified its sanctions on entities involved in the Iranian oil trade. In April 2025, the U.S. Treasury Department imposed sanctions on a Chinese refinery in Shandong province for allegedly purchasing over $1 billion worth of Iranian crude oil. These measures are part of broader efforts to disrupt Iran's "shadow fleet," which is used to transport oil covertly. The sanctions have also targeted several associated companies and vessels involved in the oil trade.

China's Strategic Oil Reserves and Import Patterns

Despite a decline in seaborne imports, China has continued to build its crude oil stockpiles. In May 2025, the stockpiling rate exceeded 1 million barrels per day for the second consecutive month. This strategy indicates China's efforts to mitigate potential supply disruptions amid escalating geopolitical tensions and sanctions.

Market Reactions and Global Implications

The ongoing conflict and associated risks have led to increased volatility in oil markets. On June 17, 2025, benchmark U.S. crude futures rose by 4.3% to $74.84 per barrel. However, prices remain lower than a year ago, partly due to the continued flow of Iranian oil to major buyers like China. The situation remains fluid, with potential for further disruptions depending on the developments in the Middle East and international responses.

Newsletter

Related Articles

0:00
0:00
Close
Brazil's Supreme Court Imposes Radical Restrictions on Former President Bolsonaro
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Judge Criticizes DOJ Over Secrecy in Dropping Charges Against Gang Leader
Apple Closes $16.5 Billion Tax Dispute With Ireland
Von der Leyen Faces Setback Over €2 Trillion EU Budget Proposal
UK and Germany Collaborate on Global Military Equipment Sales
Trump Plans Over 10% Tariffs on African and Caribbean Nations
Flying Taxi CEO Reclaims Billionaire Status After Stock Surge
Epstein Files Deepen Republican Party Divide
Zuckerberg Faces $8 Billion Privacy Lawsuit From Meta Shareholders
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
SpaceX Nears $400 Billion Valuation With New Share Sale
Microsoft, US Lab to Use AI for Faster Nuclear Plant Licensing
Trump Walks Back Talk of Firing Fed Chair Jerome Powell
Zelensky Reshuffles Cabinet to Win Support at Home and in Washington
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Irish Tech Worker Detained 100 days by US Authorities for Overstaying Visa
Dimon Warns on Fed Independence as Trump Administration Eyes Powell’s Succession
Church of England Removes 1991 Sexuality Guidelines from Clergy Selection
Superman Franchise Achieves Success with Latest Release
Hungary's Viktor Orban Rejects Agreements on Illegal Migration
Jeff Bezos Considers Purchasing Condé Nast as a Wedding Gift
Ghislaine Maxwell Says She’s Ready to Testify Before Congress on Epstein’s Criminal Empire
Bal des Pompiers: A Celebration of Community and Firefighter Culture in France
FBI Chief Kash Patel Denies Resignation Speculations Amid Epstein List Controversy
Air India Pilot’s Mental Health Records Under Scrutiny
Google Secures Windsurf AI Coding Team in $2.4 Billion Licence Deal
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
South African Police Minister Suspended Amid Organised Crime Allegations
Nvidia CEO Claims Chinese Military Reluctance to Use US AI Technology
Hong Kong Advances Digital Asset Strategy to Address Economic Challenges
Australia Rules Out Pre‑commitment of Troops, Reinforces Defence Posture Amid US‑China Tensions
Martha Wells Says Humanity Still Far from True Artificial Intelligence
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
U.S. Resumes Deportations to Third Countries After Supreme Court Ruling
Excavation Begins at Site of Mass Grave for Children at Former Irish Institution
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
EU Delays Retaliatory Tariffs Amid New U.S. Threats on Imports
Trump Defends Attorney General Pam Bondi Amid Epstein Memo Backlash
Renault Shares Drop as CEO Luca de Meo Announces Departure Amid Reports of Move to Kering
Senior Aides for King Charles and Prince Harry Hold Secret Peace Summit
Anti‑Semitism ‘Normalised’ in Middle‑Class Britain, Says Commission Co‑Chair
King Charles Meets David Beckham at Chelsea Flower Show
If the Department is Really About Justice: Ghislaine Maxwell Should Be Freed Now
NYC Candidate Zohran Mamdani’s ‘Antifada’ Remarks Spark National Debate on Political Language and Economic Policy
President Trump Visits Flood-Ravaged Texas, Praises Community Strength and First Responders
From Mystery to Meltdown, Crisis Within the Trump Administration: Epstein Files Ignite A Deepening Rift at the Highest Levels of Government Reveals Chaos, Leaks, and Growing MAGA Backlash
Trump Slams Putin Over War Death Toll, Teases Major Russia Announcement
Reparations argument crushed
Rainmaker CEO Says Cloud Seeding Paused Before Deadly Texas Floods
×