Iran sustains oil exports despite sanctions, Asia remains key market

Investing.com -- Maritime data firm Signal Ocean has reported that Iran maintained substantial crude oil exports from January 2023 to March 2025, despite ongoing international sanctions. The country exported about 268.5 million barrels of oil, all of which came from its own production, indicating Tehran’s ability to withstand global pressure.

A significant aspect of Iran’s export strategy is its heavy dependence on Kharg Island. The island was responsible for 96.6% of all shipments and 95.3% of terminal usage during this period, emphasizing its crucial role in Iran’s oil logistics infrastructure and its strategic importance in maintaining flows despite sanctions.

In order to increase efficiency and minimize operational risk, Iran relied largely on Very Large Crude Carriers (VLCCs), which transported over 91% of the total export volume. This strategy allowed Iran to transport large volumes per trip and likely reduced exposure to maritime interception. Furthermore, crude oil made up 99.8% of the cargo, highlighting Iran’s reliance on its primary hydrocarbon resource.

On the demand side, the majority of Iran’s exports were sent to Asia, where geopolitical alignment and logistical flexibility have enabled continued trade. Singapore was the top destination, receiving 60% of import volumes, followed by China (25%) and Malaysia (6%). Chinese ports such as Dongjiakou and Lanshan, known for blending and storage, played a key role in the discreet renaming of Iranian crude before it was reintroduced into global markets under different identities.

These trade patterns reflect the shifting geopolitical landscape. Iran’s ability to maintain oil exports in spite of sanctions highlights the limitations of Western enforcement, particularly in the maritime sector. Its strategic shift towards the East, especially China, reflects broader geoeconomic realignments related to Beijing’s energy security needs and its Belt and Road Initiative. This alignment has allowed Iran to maintain access to major energy markets despite ongoing attempts to economically isolate it.

However, recent data from March 2025 shows a potential change in this model. Monthly exports decreased to 9.7 million barrels, a 0.82% drop from February and a significant 31% year-over-year drop compared to March 2024. This decline coincides with the U.S.’s announcement of renewed, stricter sanctions, specifically targeting oil flows to China. These new measures reportedly focus on maritime insurers, ship registries, and logistics networks involved in Iranian oil transshipments, which are key to Iran’s evasive strategies.

While Iran has shown remarkable resourcefulness in maintaining oil exports under pressure, the renewed sanctions seem to be having a real impact. If enforcement efforts increase and China’s tolerance decreases under diplomatic pressure, the decline in March could signal the start of a more restrictive phase for Iranian crude.

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