China's Oil Imports from Iran Hit Decade-High as Sanctions Loom
China's imports of oil from Iran have hit a decade-high as the United States prepares to reimpose sanctions on the Iranian oil industry.
According to data from the Chinese customs administration, China imported an average of 1.1 million barrels of oil per day from Iran in July, up from 917,000 bpd in June. This is the highest level of Iranian oil imports since 2013.
The increase in Iranian oil imports comes as the United States is preparing to reimpose sanctions on Iran that were lifted in 2015 under the Iran nuclear deal. The sanctions are expected to go into effect on November 4.
China is Iran's largest oil customer, and the two countries have a close economic relationship. China is unlikely to fully comply with the US sanctions, and it is possible that Iranian oil imports could continue to increase in the coming months.
The increase in Iranian oil imports is a major challenge for the US, which is trying to pressure Iran to change its behavior in the Middle East. The sanctions are also likely to have a significant impact on the global oil market, as Iran is a major producer of crude oil.