Did Iran secretly ship 70 million barrels of oil to China? Report claims $6 billion crude exported before blockade restored

Iran reportedly shipped nearly 70 million barrels of crude oil worth an estimated $5-6 billion during a brief pause in US restrictions, building a financial cushion before Washington reinstated its blockade in the Strait of Hormuz. The shipments, carried out between mid-June and mid-July, are expected to generate billions in revenue for Tehran in the coming months, with much of the crude ultimately destined for China.

According to a Wall Street Journal report, around 20 Iranian oil tankers began arriving off Malaysia’s eastern coast in late June after the United States temporarily lifted restrictions on Iranian shipping. Independent estimates from advocacy group United Against Nuclear Iran (UANI) and oil market analysts cited by the newspaper suggest Tehran exported roughly 70 million barrels during the one-month window. The US has since reimposed restrictions, once again limiting Iranian exports through the Strait of Hormuz.

Oil shipped to China

Analysts say Iran relied on its long-established sanctions-evasion network to move the oil. Tankers reportedly sailed to the Eastern Outer Port Limits, an area outside Malaysia’s territorial waters, where crude was transferred at sea to other vessels using large hoses. These receiving tankers then transport the oil to private Chinese refiners, often referred to as “teapot” refineries, which purchase Iranian crude at discounted prices.

Several tankers, including the Diona, Hero II, Sonia 1 and Stream, reportedly reached the Malaysian transfer zone during the period. Experts believe the sudden increase in tanker traffic reflects Tehran’s effort to maximise exports before tighter US enforcement resumed.

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Charlie Brown, a Singapore-based analyst with United Against Nuclear Iran, told the outlet that Iran acted quickly to build a significant export buffer once restrictions were eased. Jonathan Panikoff, Middle East expert at the Atlantic Council, said Iran's struggling economy makes oil revenue critical, adding that the government is likely to prioritise those earnings to support its strategic objectives amid renewed tensions with the United States.

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