Chinese Teapot Refineries Process Iranian Crude as Its Share of Seaborne Imports Jumps to 18%
Updated
Updated · CNN · May 12
Chinese Teapot Refineries Process Iranian Crude as Its Share of Seaborne Imports Jumps to 18%
5 articles · Updated · CNN · May 12
Iranian crude supplied 18% of China’s seaborne oil imports last month, up from 13% before the war, with small independent “teapot” refineries still processing the sanctioned barrels despite US pressure.
Shandong and nearby ports received more than 1.5 million barrels per day of Iranian oil on average in March and April, as Beijing prioritized fuel security and told firms to ignore US sanctions on refineries.
The US Treasury blacklisted 12 people and entities before Trump’s China trip, adding to sanctions on at least five Chinese refineries since last year, including Hebei Xinhai and larger buyer Hengli Petrochemical.
Shipping data and satellite imagery traced the trade through shadow-fleet transfers near Singapore, with at least seven vessels carrying Iranian crude toward Shandong last month even as US naval forces intercepted tankers at sea.
The flow is now a live issue in Trump-Xi talks, underscoring how China’s discounted oil purchases help sustain Iran while testing Beijing’s balancing act between US ties and its relationship with Tehran.
With US warships hunting Iranian tankers, how close is this shadow oil trade to igniting a much wider global conflict?
As China orders its firms to ignore US sanctions, are global companies now trapped in an economic war between superpowers?
China’s 1.38 Million-Barrel Iranian Oil Lifeline: U.S. Sanctions, Teapot Refineries, and the Geopolitical Energy Showdown
Overview
The United States has ramped up sanctions against Chinese 'teapot' refineries and their trading arms to disrupt the flow of sanctioned oil, which is largely sustained by demand from smaller, independent Chinese refiners. These refiners often operate outside the U.S. financial system, making them more insulated from direct sanctions. In response to the sanctions, targeted companies like Hengli Petrochemical have restructured their international operations, but skepticism remains about the effectiveness of these moves. This escalating pressure highlights the growing dilemma for Chinese firms, who must now navigate between U.S. enforcement and China's countermeasures in a tense geopolitical environment.