Trade data shows Tehran offering over $8 per barrel discounts to Chinese buyers — the largest in more than a year — as U.S. sanctions disrupt sales and raise fears among refiners.
According to trade sources cited by Reuters on Wednesday, October 29, the Iranian regime has raised its oil export discounts to China to their highest level in more than a year, as tightening U.S. sanctions continue to disrupt sales and deter buyers.
Iran’s light crude is currently being sold at more than $8 per barrel below Brent for December delivery, compared with about $6 in September and $3 in March. In some cases, prices have reportedly fallen by as much as $10 per barrel, as buyers seek deeper discounts to offset the risks of sanctions and potential delays in Chinese ports.
The disruptions follow new U.S. sanctions targeting companies and refineries allegedly involved in trading Iranian oil, including four Chinese refineries, as well as certain ports and vessels. Traders say these measures have complicated Iran’s oil sales and increased caution among buyers.
The renewed sanctions on both Russia and Iran have also put pressure on independent refineries already constrained by limited import quotas. Western nations, including the United States, the United Kingdom, and the European Union, recently imposed additional trade restrictions on major Russian oil producers in an effort to force Moscow to end its war in Ukraine.
These developments have led some Chinese and Indian refiners — the two main buyers of Russian crude — to scale back purchases. As a result, the surplus of unsold Russian oil has further depressed prices and added to Iran’s already substantial inventories.
Data from Kpler shows that around 14% of China’s crude imports originate from Iran. However, in September, imports dropped to 1.2 million barrels per day, the lowest level since May and well below this year’s average of 1.38 million barrels per day.
The steep discounts highlight the regime’s growing desperation to sustain oil revenues amid escalating sanctions, falling demand, and mounting competition in the Asian market.
