China's
independent 'teapot' refiners have imported around 1.2 million barrels of
Iranian crude daily through much of 2026, matching last year's levels despite
expanded U.S. sanctions on over 1,000 entities.
They use ship-to-ship transfers near Malaysia, yuan or cryptocurrency payments, and shadow fleets to evade detection, while major state firms avoid the trade to dodge risks.
This steady flow provides Iran vital revenue and cheap fuel for China's gasoline and diesel markets, as U.S. officials limit actions to preserve ties ahead of a potential Xi Jinping visit.