China’s state-owned oil refiners have started exploring fresh deals to buy crude oil from Iran, after the US relaxed some sanctions in a limited move, said people familiar with the matter, reported Bloomberg. The step comes as global oil markets remain tense due to the ongoing conflict in West Asia.
The US has given a 30-day waiver, allowing some Iranian oil to be sold in order to prevent a sharp jump in global prices. While the relief is temporary, it has opened a small window for buyers, especially in Asia.
Sources say Chinese refiners have started exploring possible deals, though talks are still at an early stage.
At the same time, officials from National Iranian Oil Company, along with middlemen, are quietly reaching out to Asian refiners to explore demand, people familiar with the matter said. These discussions are being kept low-key, as they are not officially announced.
China has been one of the biggest buyers of Iranian oil in recent years. However, with the US easing restrictions briefly, more buyers may enter the market, increasing competition.
The limited waiver could push up demand for Iranian oil, which may lead to higher prices. For China, this creates a tricky situation — balancing cost, supply security and political risks.
Refiners are likely to move cautiously before making any firm commitments.
The situation has become more tense as the conflict in West Asia enters its fourth week. Concerns have grown around the
Iran’s move to shut the route in late February has already disrupted tanker movement. This narrow passage carries a large share of the world’s oil and gas, and any blockage can quickly impact global supply.
Crude oil prices have climbed above $110 per barrel, raising worries for oil-importing countries like India. Higher oil prices can lead to rising inflation, a wider current account deficit, and slower economic growth.
Markets remain on edge as tensions between the US and Iran continue. Traders are closely watching whether the Strait of Hormuz situation improves or worsens in the coming days.
For now, China’s cautious approach shows that while opportunities exist due to the US waiver, uncertainty remains high. The next few weeks will be crucial in deciding whether this temporary relief leads to actual deals or fades amid rising geopolitical risks.