Iranian Oil Piles Up in Floating Storage off Asia; China's Crude Imports From Iran More Than Halved in June

With the US naval blockade back in force, Iran is finding it harder to sell its crude to its main customer, China. According to ship-tracking data, China's imports of Iranian crude more than halved in June from the prior month to about 654,000 barrels a day; independent Chinese refiners, Iran's main buyers, have cut purchases, while state-owned refiners have stayed on the sidelines amid banks' concerns over secondary US sanctions.

As a result, a large volume of unsold Iranian oil has accumulated on tankers in Asian waters, with more than 20 million barrels idling for seven days or longer. The delay in selling this crude reduces Tehran's hard-currency revenue and weakens its hand in negotiations with Washington.