Iran’s Oil Lifeline Faces ‘Biggest Test Yet’ as China Steps Back

Iranian oil shipments to China, a resilient trade that’s survived years of US sanctions to provide a crucial economic lifeline to Tehran, is coming under huge strain from waning demand and an American blockade.

China’s independent oil refiners, known as teapots, have dialed back purchases and cut operating rates as they grapple with mounting economic losses, while recent US sanctions have made some buyers wary about the Iran trade. That’s prompted sellers to slash prices to try and entice buying interest.

Iranian crude flows to China tumbled to about 160,000 barrels a day in May, down from 1.8 million ...