US sanctions and Hormuz blockade cut Chinese imports of Iranian oil by 48%

Chinese crude imports from Iran have fallen by 48% since the start of the war, driven by the blockade of the Strait of Hormuz and Houthi attacks on the Bab Al Mandeb strait. According to data from energy analytics firm Kpler, daily imports averaged about 530,000 barrels in July and August, a 36% drop from the first half of the year and 72% below the peak recorded in October 2024. On Monday, US Treasury Secretary Scott Besent expanded sanctions against more than 60 entities linked to Iran but stopped short of targeting major Chinese banks. Neil Quilliam, an associate fellow at Chatham House, noted that as long as major Chinese banks remain untouched, Beijing will likely sustain its Iranian oil imports with relatively little disruption. Meanwhile, rising freight costs and longer shipping routes—such as the 50-day journey around the Cape of Good Hope—are placing significant economic pressure on Chinese buyers. As the world’s largest crude importer, China continues to rely on commercial stockpiles to manage supply gaps, with analysts suggesting that Beijing has little incentive to voluntarily abandon its access to discounted Iranian oil.