Iranian Crude Cargoes Available to China Nearly Dry Up Under Tightened US Blockade

Iranian crude cargoes readily available to Chinese buyers have nearly dried up following the reinstated US blockade on Iran's oil exports, Oilprice.com reported on August 21, 2026 (30 Mordad 1405), citing tanker-tracking firm Kpler. Muyu Xu, Kpler's senior crude analyst, said Friday that total Iranian crude volume outside the Persian Gulf and Gulf of Oman is currently about 83 million barrels, down from over 100 million barrels before the US reinstated the blockade in mid-July. Of roughly 40 million barrels in floating storage near Singapore's Eastern Outer Port Limits anchorage, only two cargoes, about 4 million barrels, remain unsold, she said.\n\nKpler said the thinning supply has driven Iranian Light crude to a $3.50 premium over ICE Brent, a sharp reversal from a $3.50 discount a week earlier. Oilprice.com noted that US President Donald Trump has announced what he called the "most crushing economic operation ever taken against any country" targeting Iran and warned that countries extending a "lifeline" to Iran could face "tremendous" economic consequences; China buys more than 90 percent of sanctioned Iranian oil. Kpler said Chinese independent refiners will likely need to turn to Russian Urals crude or fuel oil to cover the shortfall, or face reduced throughput in October as inventories run thin.