Trouble in China: Iran facing difficulty in selling oil to best customer, thanks to Trump

American sanctions on a Chinese non-state refinery, "teapots" of the sort Iran has regularly used to bypass US sanctions on oil transportation and sales, have led to delays in further shipments, according to a report today (Thursday) by Iran International.

According to the report, "no fresh deals for Iranian crude have been reported since March 20."

Iran’s main oil customers are reportedly small Chinese refineries, officially not linked to state structures, most of which are based in Shandong, where 90% of Iranian oil cargoes is discharged.

Following the sanctioning of Shouguang Luqing Petrochemicals, which has a refining capacity of 60,000 barrels per day, other refineries are reportedly in a wait and see mode, and are not quick to purchase additional Iranian oil, lest they face financial consequences themselves. Despite this, Iranian imports to Chinese are set to increase over the next few months.

President Trump has been seeking to close every possible loophole for Iranian oil sales as part of an effort to impose "maximum pressure" sanctions on the country, with the aim of forcing it to come to the negotiating table over its nuclear and other weapons projects.

Iran is already reeling from a series of economic crises, including serious inflation, mounting unemployment, fuel shortages, and a collapsing currency. Things have gotten so bad that Iran is working to move away from supporting once vital allies such as the Houthis, as it works to survive the pressure from the United States.