China pushes back after Trump tightens the screws on Iran

China’s refiners have reportedly increased their purchases of heavily discounted Iranian crude oil following the Trump administration’s decision to intensify sanctions on Iran, according to the New York Times. This development highlights ongoing geopolitical tensions as the U.S. aims to limit Iran’s oil trade, which has historically been a significant source of revenue for Tehran. Despite the sanctions, China remains a key player in the Iranian oil market, though its imports have decreased compared to last year. Market participants are closely monitoring these dynamics, as they could impact crude oil prices globally. Key Takeaways Markets suggest that China’s continued purchase of Iranian crude, despite U.S. sanctions, could influence global oil prices. Pricing appears consistent with scenarios where geopolitical tensions may lead to speculation about a potential all-time high in crude oil prices. The current odds for crude oil reaching a new all-time high by September 30 remain low, at 1.8%, but increase to 12.5% by December 31. What to Watch Observers should monitor statements from key actors such as OPEC Secretary General Mohammad Sanusi Barkindo and Saudi Energy Minister Abdula...