Iran is scrambling to retrieve 25 million barrels of oil, valued at $1.75 billion, that has been stuck in two Chinese ports since 2018. The oil was stranded after former U.S. President Donald Trump withdrew waivers allowing the export of Iranian oil, leaving it stuck in storage. As Trump prepares for a potential return to power, analysts fear he will tighten sanctions even further, making it even harder for Iran to recoup the oil. This situation underscores the complex hurdles Iran faces even when it has a key buyer like China.
For years, China has quietly purchased the majority of Iran’s oil at discounted rates, circumventing U.S. sanctions. However, the oil in Dalian and Zhoushan ports has remained in limbo. Iran’s oil ministry has been negotiating with Chinese storage operators, who are now demanding over $450 million in storage fees for the oil. While Tehran has been selling oil for years through covert methods, the stranded barrels have become an increasingly urgent issue for Iran, particularly with the looming threat of tighter sanctions.
To resolve the issue, Iran will likely have to move the oil out of storage and re-document it before it can be sold. The Iranian government has engaged in discussions with China to find a way out, but with the clock ticking, the fate of the oil hangs in the balance, caught in a complex web of geopolitical pressures and economic stakes.
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