Oil in Global Economy Series: Who are major buyers of Iranian crude?

As the U.S. sanctions specifically targeting Iran’s oil exports and banking sector looms in November, let’s take a look who are the major buyers of Iranian crude oil.

• China and India are the two biggest buyers of Iranian crude in 2018. Together they accounted for more than 50 percent of Iranian oil exports. With China being slightly bigger. In the face of looming sanctions, and amid the heightened trade tensions, China has promised to keep the oil flowing from Iran despite U.S. sanctions and together with the EU, it is working on a mechanism using the newly created special purpose vehicle (SPV) to bypass the sanctions.
• India, on the other hand, has also promised to keep the oil flowing not for trade war but for the importance of oil to its economy and increased price is already creating political tensions in the country.
• Japan is the third biggest buyer of Iranian crude oil accounting for more than 12 percent share. While Japan has been trying for a waiver over its imports, it has announced plans to cut back its imports in the face of sanctions.
• South Korea is the fourth largest buyer of Iranian crude oil accounting for 7 percent of Iran’s total oil imports but in the face of looming sanctions, South Korea has announced intentions to cut back on imports.
• UAE is the fifth biggest buyer with 6 percent share and it is likely to cut it to zero once the sanctions set in as it is a key U.S. ally.
• While Spain is the biggest buyer in Europe, the EU as a whole account for 22 percent share in Iran’s oil imports. The EU is currently working on a mechanism using the newly created special purpose vehicle (SPV) to bypass the sanctions.
• Other buyers include Malaysia, Taiwan, Syria, Singapore, and Turkey.