Offers of Iranian crude oil to Chinese buyers have experienced a significant decline alongside a sharp jump in prices, driven by the reimposition of the US blockade on Tehran’s shipping and ports.

According to a report by Reuters, the restrictions have severely constrained shipments from Iran, which serves as a primary source of hard currency for the country.

Trade sources highlighted by Reuters note that offers for September and October delivery cargoes to China have decreased as existing barrels on maritime vessels are progressively sold off.

Furthermore, ship-tracking data from Kpler indicates that Iran’s overall oil exports have fallen since mid-July, applying additional pressure on independent refiners in China’s Shandong province who frequently process sanctioned crude.