fromThe Conservative Treehouse:

An interesting reaction from Beijing highlights an evaluation of risk from the lack of oil flowing from Iran.

According to most evaluated data, China was buying more than 80% of Iran’s shipped oil. That’s according to data from 2025 as analyzed by Kpler andpublished in January by Reuters.

Iranian oil always had limited buyers due to U.S. sanctions. However, China purchased on average 1.38 million barrels per day of Iranian oil last year, according to Kpler. That represented about 13.4% of the total 10.27 million bpd of oil it imported by sea.

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With President Trump previously cutting of discounted oil from Venezuela, two things unfolded. First, the Venezuela oil was no longer sold with non-petrodollar currencies; Venezuela oil is now being sold on the standard oil market. Secondly, with the Venezuela oil disrupted China would become even more dependent on Iranian oil shipments if they wanted to retain the discounted rate.

How big is the financial difference?According to Reuters, “Iranian Light crude has traded at around $8 to $10 a barrel below ICE Brent on a delivered basis to China since December.” … “That means Chinese refiners save about $8 to $10 a barrel if they buy Iranian Light rather than non-sanctioned oil.”

Additionally, as noted before Operation Epic Fury began, “Iran has arecordamount of oil on the water, equivalent to around 50 days of output, as China has bought less because of sanctions and Tehran seeks to protect its supplies from the risk of U.S. strikes, Kpler said.”

Buying discounted oil from Venezuela, Iran and Russia resulted in billions of dollars saved by China. The only production venue not currently disrupted would be purchases from Moscow. This increases the dependency, but the purchase price may no longer carry any discounted value, at least not at the previous rate.

India was purchasing a significant amount of Russian oil for its own refinery use and sale back into the global market. China and India would now be bidding for what is likely a more valuable Russian export. No more discounts put the “teapot” refining operations in Shandong, China, into a squeeze. This also highlights the decision by China to limit refined exports.

Source: SGT Report