Chinese Refiners Buy Iranian Oil After Trump Ceasefire

Chinese independent refiners, known as teapots, are rushing to secure prompt cargoes of Iranian crude oil after global prices slumped below $100 per barrel. This market shift followed an announcement by Donald Trump that the United States agreed to a two-week ceasefire with Iran, contingent on the immediate and safe reopening of the Strait of Hormuz.

The price drop follows a period of extreme volatility starting in late February 2026, driven by U.S. and Israeli strikes on Iran. Those conflicts led to the closure of the Strait of Hormuz and a surge in oil costs, which caused teapots to avoid Iranian and Russian oil as discounts vanished. To stabilize the market, the United States lifted sanctions on Iranian and Russian oil, and Iranian authorities pledged to ensure safe passage for tankers through the strait.

To support domestic fuel supplies and prevent production cuts, the Government of China issued crude oil import quotas totaling approximately 55 million metric tons to independent refiners. These measures aim to mitigate operational losses for refiners, which averaged nearly $21 per barrel in late March, while Beijing manages fuel supplies for domestic use and selective exports to the Philippines and Vietnam.