TEHRAN - Iran’s crude exports to China are expected to reach 1.74 million barrels per day (bpd) in February, marking an 86 percent increase from January, according to preliminary data from intelligence firm Kpler.

Iran’s oil shipments to China rebounded this month as traders managed to resolve logistical challenges posed by tighter U.S. sanctions, allowing buyers in the world’s largest crude importer to receive delayed cargoes, Mehr News Agency reported.

According to Bloomberg, citing market traders who requested anonymity due to the sensitivity of the matter, the surge in shipments was driven by increased ship-to-ship transfers and the use of alternative terminals to offload cargoes.

China has long been the largest buyer of Iranian crude, with most shipments going to small, independent refineries known as "teapots." This trade remains a crucial source of revenue for Tehran despite persistent U.S. sanctions. The Trump administration earlier this month imposed additional restrictions on this trade.

Scott Bessent, the U.S. Treasury Secretary, said last week that Washington aims to cut Iran’s oil exports to below 10 percent of current levels. In an interview with Fox Business, he stated, “The Chinese and possibly the Indians are buying sanctioned oil, and this is unacceptable to us.”

U.S. pressure on Iran’s oil trade has intensified since late last year, with the Biden administration blacklisting dozens of tankers, traders, and shipping firms, leading to increased caution among buyers and logistics companies. However, supply chains have swiftly adapted, with traders utilizing non-sanctioned vessels and setting up new front companies to continue shipments.

EF/MA