U.S. sanctions on Iran toothless without China

The U.S. and China appear set for a showdown after the U.S. warned that
“nobody is above the reach of U.S. sanctions”. China is the main buyer of
Iranian oil and has said it views unilateral sanctions as illegal


IRAN CRUDE OIL EXPORTS
million barrels per
day

China imported and stored large
volumes while prices were
low before war

Rest of
world

China

Over 80%
of Iranian exported
oil is now shipped to China

2
1
0
2016 2020 2025

 
IRAN OIL EXPORTS TO CHINA

Discount: $8-10/barrel below Brent crude

Iran supplies
may be
drying up
due to U.S.
blockade

1.5
1.0
0.5
0.0
JAN 2025	JAN 2026	AUG


CHINA OIL IMPORTS
China is not
dependent on
Iranian oil

CRUDE OIL STOCKPILES
179	OECD Europe
Japan	263
U.S.	413
China	1,397

Total
10.27

Iran
13.4%

Rest of
world
86.6%

Seaborne
imports 2025

Dec 2025, million bpd

Chinese stockpiles
smooth demand during Hormuz
closure, stabilising global oil prices


Sources: Bloomberg, Reuters, EIA 
Picture: Getty Images
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