Iranian oil supplies to China tighten as US blockade cuts Tehran's crude exports


 Iranian flag with stock graph and an oil pump jack miniature model are seen in this illustration taken October 9, 2023.
Iranian flag with stock graph and an oil pump jack miniature model are seen in this illustration taken October 9, 2023.
(photo credit: REUTERS/DADO RUVIC/ILLUSTRATION/FILE PHOTO)

Offers of Iranian crude to Chinese buyers have declined and prices have jumped this week as the US blockade has cut Tehran's shipments, according to trade sources, with the threat of more sanctions from Washington looming.

The US re-imposed its blockade of Iran's shipping and ports on July 13 as a deal to halt the war between them broke down in an attempt to cut off oil sales - Tehran's primary source of hard currency - compounding earlier losses from wartime strikes on its energy infrastructure.

The number of offers for Iranian oil cargoes to China for September and October delivery has declined from July and August cargoes, four trade sources familiar with the matter said. The offers have declined as barrels already in ships on the water have been sold, they said.

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