Washington has agreed to ease sanction pressure on Tehran, enabling Iran to increase its oil shipments to China, Bloomberg reported on Aug. 25.
The report suggests that this move was undertaken to maintain fuel price stability in the United States, as well as to counter Russia’s economic influence in Asia by allowing Iran to actively compete with Moscow for regional market share.
“U.S. officials privately acknowledge they’ve gradually relaxed some enforcement of sanctions on Iranian oil sales,” the article reads.
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“Tehran has restored production to the highest level since the ban kicked in five years ago and is shipping its most crude to China in a decade.”
Ultimately, the daily export of Iranian oil to China has increased on average to 1.5 million barrels per day, a peak since 2018. The publication highlights that this was one of the reasons for the recent drop in oil prices.
On the other hand, Russian oil shipments by sea over the past month have fallen to 2.84 million barrels, 1.5 million barrels less than in mid-May. Overall, its supplies to Asia have dropped by 30% over this period.
Read the original article on The New Voice of Ukraine