China Cuts Iranian Crude Buys as US Blockade Bites Hard

China's independent refiners, the so-called teapots, are pulling back sharply from Iranian barrels. Kpler data shows August imports of Iranian crude near 534,000 bpd, a steep drop from July's 823,000 bpd, as the reinstated U.S. blockade cuts off new cargo flows.

The squeeze compounds an already stretched supply picture. Beijing's new five-year energy plan, released this week, explicitly flags anxiety over import dependence and dwindling domestic crude reserves, even as China has largely dodged direct fallout from the Hormuz shutdown so far.

Reduced teapot demand for discounted Iranian barrels could force Chinese refiners toward pricier alternative grades, adding another layer of upward pressure to global crude benchmarks.