China’s oil imports from Iran experienced a significant surge in June 2025, reaching record highs despite ongoing U.S. sanctions.
China’s Surging Imports
Record Loadings: Iran’s export loadings reached a multi-year high of 1.83 million bpd in May, as per Kpler data. This significant volume directly contributed to the rise in Chinese imports.
- Floating Storage: An increase in available supplies from floating storage further fueled China’s purchasing.
- “Teapot” Refinery Demand: Independent Chinese “teapot” refineries, key buyers of Iranian oil due to its discounted price, showed robust demand as their stockpiles depleted.
- Elevated Imports Expected: Given the typical one-month transit time for Iranian oil to reach China, analysts from Kpler and Vortexa anticipate that robust loadings in May and early June will keep China’s imports from Iran elevated into July. Indeed, Chinese imports of Iranian crude averaged between 1.46 million bpd (Kpler, as of June 27) and over 1.8 million bpd (Vortexa, June 1-20), marking record highs for bilateral oil trade.
Slowdown in Iranian Exports (Second Half of June 2025):
- Impact of Airstrikes: Iran’s overall crude exports likely experienced a slowdown in the second half of June, following Israeli and U.S. airstrikes that began around June 13.
- Reduced Monthly Average: Kpler data indicates that Iran’s total crude shipments slowed to a monthly average of 1.5 million bpd so far in June. This is down from a five-week high of 2.2 million bpd observed in the week starting June 16, just prior to the intense strikes.
- Post-Attack Rush: Daniel Gerber of Petro-Logistics noted that crude exports in the first half of June were at multi-year highs as Iran “rushed to export cargoes” immediately following the Israeli attacks on June 13. While a slowdown has occurred since, Petro-Logistics assesses that crude loadings have “continued largely uninterrupted” despite the reduction.
Geopolitical Context
The situation remains fluid, with mixed signals surrounding U.S. sanctions. While U.S. President Donald Trump has indicated a potential easing in enforcement to help Iran rebuild, a senior White House official reportedly clarified that sanctions remain in place. The recent ceasefire between Iran and Israel has eased immediate fears of a Strait of Hormuz closure, which had previously spurred narrower discounts for Iranian Light crude due to supply disruption worries. The overall market sentiment is influenced by these geopolitical developments, as a significant drop in Iranian exports could tighten global supplies and support oil prices.
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Source: Reuters
