If finalized, the move would mark the first direct purchases of Iranian crude by major Chinese state refiners since 2019, when PetroChina and Sinopec continued limited imports after the United States reimposed sanctions on Tehran’s energy sector during President Donald Trump’s first administration.

Officials at Chinese state oil companies said PetroChina and Sinopec are reviewing the banking, insurance and shipping arrangements required to restart transactions with Iran. The assessments follow a memorandum of understanding signed last week that ended the recent U.S.-Israeli conflict with Iran and led Washington to issue a waiver allowing customers to buy Iranian oil and settle transactions in U.S. dollars.

Industry sources said the refiners remain cautious despite the regulatory opening. Global crude supplies remain plentiful as exports from Saudi Arabia, Kuwait and Iraq continue to rise, while shipments through the Strait of Hormuz are expected to recover following the interim peace agreement.

“There is no shortage of crude in the market,” one industry source said, noting that uncertainty remains over financing channels, insurance coverage and Iran’s ability to provide sufficient shipping capacity for large-scale exports.

Neither Sinopec nor PetroChina immediately responded to requests for comment.

Chinese refiners have maintained healthy inventories by securing cargoes from alternative suppliers, including Russia, Brazil and West Africa, during recent disruptions in Middle Eastern supplies. Analysts say those arrangements have reduced the urgency to return to Iranian barrels.

Data from tanker-tracking firm Vortexa showed Iranian crude loadings accelerated sharply between June 19 and June 24, averaging about 1.6 million barrels per day, compared with roughly 340,000 barrels per day during the first 18 days of June and around 370,000 barrels per day in May.

Despite the rebound in exports, state refiners face a challenging domestic market. Weak fuel consumption and softer petrochemical demand have contributed to lower refinery utilization rates and reduced crude import requirements across China.

Independent refiners, commonly known as “teapot” refiners, remain the primary buyers of Iranian crude. These companies typically conduct transactions through intermediary traders and settle purchases in Chinese yuan, allowing them to maintain imports despite sanctions-related restrictions.

Among the major state-owned refiners, Sinopec is viewed as the most likely candidate to resume Iranian purchases. Sources said the company has faced tighter crude supplies in recent months and has drawn down commercial inventories since May, increasing the need to replenish stocks.

According to an industry official familiar with discussions between Sinopec and the National Iranian Oil Company (NIOC), the Chinese refiner explored potential purchases during a previous 30-day sanctions waiver issued in March but ultimately declined because the timeframe was insufficient to complete a transaction.

NIOC is now preparing for renewed interest from Chinese state refiners and expects inquiries to increase in the coming days, the official said.

Under the waiver framework, NIOC is expected to act as the sole contractual counterparty for crude sales, while Russia’s ESPO blend may serve as a pricing benchmark in future negotiations, according to industry sources.

NIOC did not immediately respond to a request for comment.

In a statement issued on Thursday, Iraq’s Oil Ministry said the country has repeatedly called for a reassessment of production baselines to better reflect the sustainable production capacities of member states and Iraq’s unique security and economic circumstances. The ministry noted that OPEC has already begun a process to review member countries’ production capacities.

The debate comes amid reports suggesting Iraq could consider leaving OPEC if its production quota is not raised. While Iraqi officials rejected claims that a withdrawal decision has been made, Oil Ministry spokesperson Salim Al-Rikabi stated that Iraq expects a fair increase in its quota and warned that the country may ultimately need to decide whether remaining in the organization serves its interests.

“Iraq has no intention of withdrawing from OPEC and remains committed to its mechanisms,” Al-Rikabi said, while adding that the organization must address Iraq’s production concerns.

Iraq, a founding member of OPEC, relies heavily on oil revenues, which account for nearly 90 percent of government income. The recent regional conflict and disruptions to shipping through the Strait of Hormuz significantly affected exports and reduced production across the country.

Several Iraqi oil fields were also targeted by drone attacks during the conflict, causing further disruptions to operations. Prior to the outbreak of war in February, Iraq produced approximately four million barrels of oil per day and exported around 3.5 million barrels daily, most of which passed through the Strait of Hormuz.

Following a recent agreement between Washington and Tehran that eased regional tensions and reopened maritime routes, Iraqi authorities hope to restore production to pre-war levels within the next two months.

The possibility of Iraq reconsidering its OPEC membership has drawn attention because it would represent another setback for the organization following the departure of the United Arab Emirates earlier this year. Baghdad, however, emphasized that all production-related issues should continue to be addressed through OPEC’s established technical and consensus-based mechanisms.

Iraq maintains that its history of wars, sanctions and recent security challenges justifies a higher production allocation and expects member states to take those factors into account when determining future quotas.

U.S. President Donald Trump said on Friday he expected Tehran to respond “supposedly tonight” to a proposal delivered through Pakistani mediators, but no official Iranian reply had been made public by Saturday evening.Iranian Foreign Minister Abbas Araghchi questioned Washington’s intentions during a phone call with his Turkish counterpart, according to remarks published by Iran’s ISNA news agency.

“The recent escalation of tensions by American forces in the Arabian Gulf and their numerous actions in violating the ceasefire have added to suspicions about the motivation and seriousness of the American side in the path of diplomacy,” Araghchi said.The comments followed a confrontation on Friday in which a U.S. fighter jet fired on and disabled two Iranian-flagged tankers that Washington said had challenged an American naval blockade targeting Iranian ports.

An Iranian military official, quoted by local media, said Iran’s navy had retaliated against what he described as “American terrorism with strikes,” adding that the clashes had since ended.The incident came less than a day after another flare-up in the Strait of Hormuz, one of the world’s most strategically important shipping routes for global oil exports.

U.S. Secretary of State Marco Rubio reiterated Friday that it was “unacceptable” for Tehran to exert control over the waterway, through which a substantial share of global crude shipments passes.The Trump administration has sought to reopen commercial navigation through the strait after Iran restricted maritime access following the outbreak of conflict on Feb. 28, triggered by joint U.S.-Israeli strikes on Iranian targets.

Washington later imposed a blockade on Iranian ports, escalating tensions across Gulf shipping lanes and contributing to volatility in international energy markets.Iranian Foreign Ministry spokesperson Esmaeil Baqaei said Friday the latest U.S. proposal remained “under review.”

Meanwhile, Sheikh Mohammed bin Abdulrahman Al Thani met U.S. Vice President JD Vance in Washington on Friday to discuss Pakistani-mediated efforts to secure a longer-term settlement.Separately, satellite imagery indicated an oil slick spreading near Kharg Island, Iran’s principal oil export hub in the Gulf.

Monitoring group Orbital EOS estimated the slick initially covered more than 20 square miles before appearing to diminish by Saturday.The UK-based Conflict and Environment Observatory said the spill may have originated from damaged or leaking oil infrastructure, though the exact cause remained unclear.

Kharg Island plays a central role in Iran’s energy exports and has become increasingly sensitive amid the ongoing confrontation over Gulf shipping routes and oil flows.

Speaking at a gathering of European leaders in Yerevan, Macron said a joint approach between Washington and Tehran was the only viable path to restoring navigation through the strait, a critical corridor for global energy supplies.

“What we want above all is a coordinated reopening by the United States and Iran that is the only solution,” Macron said, emphasizing the need for diplomatic alignment to ensure safe passage.His remarks come as the U.S. military continues operations aimed at escorting vessels out of the waterway amid heightened regional tensions.

The situation has raised concerns among global energy markets and shipping operators over potential supply disruptions.Macron also reiterated France’s reluctance to engage in military action under uncertain conditions, stating that Paris would not participate in operations lacking a clear framework.

France, alongside the United Kingdom, has been working to build a coalition to secure the strait, contingent on broader de-escalation and stability in the region.

Speaking to reporters in London on Friday evening, Fidan said a multinational technical team was expected to oversee demining operations in the strait following any formal Iran-U.S. agreement, adding that Ankara viewed such participation positively as a humanitarian responsibility.

He said Türkiye would have “no problem” taking part in mine-clearing efforts if they were conducted under an internationally coordinated and neutral framework designed to ensure maritime safety rather than military advantage.

Fidan stressed that any operation would depend on the structure of the future coalition and the political conditions surrounding it.He cautioned that Ankara would reassess its position if any technical coalition involved in demining later became party to renewed military confrontation, indicating that Türkiye would avoid joining any mission that could compromise its diplomatic neutrality.

The Strait of Hormuz remains one of the world’s most sensitive maritime chokepoints, carrying roughly one-fifth of global oil shipments and serving as a critical route for energy exports from Gulf producers to international markets.

Tensions around the strait escalated sharply after the U.S.-Israeli strikes on Iran that began on Feb. 28, followed by Tehran’s retaliatory actions and effective restrictions on navigation through the narrow waterway, pushing global energy prices higher and raising fears of broader regional disruption.

Washington said last week it had begun demining work in coordination with Tehran, although Iranian officials have not publicly confirmed such cooperation.Several countries, including European naval powers, have since indicated readiness to contribute to a neutral maritime security mission aimed at restoring freedom of navigation and preventing further disruption to global shipping.

Germany has already announced plans to deploy a minesweeper to the Mediterranean in preparation for a possible Hormuz mission, while French and British defense officials have also signaled support for coordinated action.

Fidan also said he believed issues related to Iran’s nuclear program could be resolved during the next round of diplomatic talks expected to take place in Islamabad, where both Washington and Tehran are expected to send envoys.

Türkiye has sought to position itself as a balancing actor in the wider Middle East conflict, maintaining dialogue with both Western allies and regional powers while emphasizing de-escalation and diplomatic settlement over direct military involvement.

Its potential role in Hormuz demining reflects Ankara’s broader strategy of supporting regional stability without becoming directly entangled in confrontation.

Araqchi said negotiations in Islamabad had been conducted in good faith but were undermined by what he described as “maximalism” and shifting U.S. demands, adding that the talks came close to producing an agreement before breaking down.

The remarks followed an announcement by Donald Trump that U.S. naval forces would begin blockading vessels entering or leaving Iranian ports, a move that risks destabilizing a fragile ceasefire reached after weeks of conflict.

US Central Command said the blockade would take effect at 10 a.m. ET (1400 GMT) and would apply to all maritime traffic linked to Iranian ports across the Arabian Gulf and Gulf of Oman, while maintaining freedom of navigation through the Strait of Hormuz for vessels not bound for Iran.

Trump said the United States would act against ships paying what he described as “illegal tolls” to Iran and warned that any attack on U.S. or commercial vessels would trigger a strong military response.

Iran’s Islamic Revolutionary Guard Corps said any approach by foreign military vessels to the strait would be treated as a violation of the ceasefire and met with a “decisive” response.

Parliamentary Speaker Mohammad Baqer Qalibaf dismissed the U.S. position, saying Tehran would respond in kind. “If you fight, we will fight, and if you come forward with logic, we will deal with logic,” he said, according to state media.

The talks in Islamabad marked the first direct engagement between the United States and Iran in more than a decade and followed a ceasefire announced earlier in the week after six weeks of conflict that has disrupted global energy markets and pushed oil prices above $100 per barrel.

JD Vance, who led the U.S. delegation, said no agreement had been reached, while signaling that diplomacy could continue. Trump also described the talks as “very friendly” and expressed confidence that Iran might return to negotiations.

A U.S. official said key sticking points included demands for Iran to halt uranium enrichment, dismantle enrichment facilities, transfer highly enriched material and end support for regional groups, alongside ensuring open access to the strait.

Iranian officials, including President Masoud Pezeshkian, said Tehran remained open to a “balanced and fair agreement,” blaming Washington for the breakdown and urging a return to international legal frameworks.

Shipping data showed that three fully laden supertankers transited the strait on Saturday, suggesting that maritime flows had not yet been fully disrupted despite the looming blockade.

Iran’s Revolutionary Guards said ships should avoid the main navigation zone and instead follow designated entry and exit paths to reduce the risk of collision with naval mines.

“All ships intending to transit the Strait of Hormuz are hereby notified they should take alternative routes for traffic,” the statement said, emphasizing maritime safety concerns.

The announcement follows Tehran’s agreement to temporarily reopen the strategic strait as part of a two-week truce reached with Washington. The ceasefire was agreed late Tuesday, shortly before a deadline set by U.S. President Donald Trump for Iran to comply with demands related to the reopening of the passage.

The Strait of Hormuz is a critical global energy corridor, through which roughly one-fifth of the world’s oil supply typically passes.

Iran had effectively restricted traffic through the route since early March, contributing to a surge in global energy prices and heightening concerns over supply disruptions.

The designation of alternative routes signals continued operational risks in the waterway despite the ceasefire, underlining the fragile security environment and the potential for further disruption to global shipping and energy markets.

A proposal brokered by Pakistan called for an immediate ceasefire and reopening of the strait, followed by negotiations on a broader settlement within weeks, according to a source familiar with the plan. Iran declined the offer, instead outlining conditions including sanctions relief, regional de-escalation, and reconstruction measures, state media reported.

Trump reiterated threats to target Iranian infrastructure if Tehran failed to meet his demands by the deadline, warning that bridges and power plants could be destroyed. He said the United States could “take out” the country if an agreement was not reached.Fighting continued across the region.

The Israeli military said it carried out airstrikes on Iranian government infrastructure in Tehran and other areas, while intercepting missiles launched from Iran. Saudi Arabia reported intercepting ballistic missiles over its eastern region, with debris falling near energy facilities, and issued public safety alerts alongside the United Arab Emirates and Bahrain.

Iran’s envoy to the United Nations condemned the U.S. threats as a violation of international law, while senior Iranian officials dismissed Trump’s warnings. Authorities also called for civilian demonstrations to protect infrastructure sites.

A synagogue in central Tehran was damaged by a projectile, according to local media, as the conflict widened beyond military targets.Global oil markets remained under pressure, with prices hovering around $110 per barrel amid uncertainty over the reopening of the Strait of Hormuz, a conduit for roughly a fifth of the world’s oil and gas supply.

The continued disruption has raised concerns about inflation and energy security worldwide.The conflict, which began after U.S. and Israeli strikes on Iran in late February, has led to thousands of casualties across the region.

A U.S. fighter jet was also downed last week, underscoring the escalating risks for Washington as the crisis deepens.

The proposal, endorsed by lawmakers on a security panel, includes “financial arrangements and rial toll systems” aimed at asserting Iran’s sovereign role, according to state television.

The plan also provide for cooperation with Oman, which shares control of the waterway’s southern side.Strategic chokepoint under strainThe Strait of Hormuz, a key route for global oil and gas shipments, has been effectively constrained since the onset of the U.S.-Israeli war with Iran.

Tehran has limited passage for vessels it says are linked to adversaries, tightening oversight of maritime traffic.Iran’s Revolutionary Guard Corps has maintained a security presence in the area, with maritime monitors reporting that only a limited number of ships are currently transiting daily, often via routes approved by Iranian authorities.

Iranian officials have argued that transit fees are necessary to ensure the safety of shipping through the strait. The chairman of a parliamentary civil affairs committee, cited by Fars news agency, said vessels should contribute financially to security arrangements in the corridor.

The proposal signals a potential shift toward formalizing Iran’s control over access to the waterway, raising concerns among energy markets already strained by supply disruptions.Limited passage amid diplomatic signalsSome vessels have been allowed to pass in recent days.

Ishaq Dar said Iran had permitted 20 additional ships to transit the strait, a move he described as supporting regional stability.U.S. President Donald Trump said last week that 10 oil tankers were allowed through as a goodwill gesture during ongoing tensions, though details of any linked negotiations remain unclear.

The extent and timing of the proposed toll system’s implementation have not been specified.

Speaking at the Egypt Energy Show 2026 in Cairo, Sisi said only Trump had the capacity to end the conflict in the Gulf region, appealing directly for U.S. leadership to prevent further escalation.

“I tell President Trump: nobody can stop the war in our region in the Gulf but you,” Sisi said. “Please help us stop the war. You are capable of doing so.”

Sisi warned that continued targeting of oil production facilities and refineries could trigger simultaneous supply disruptions and price surges, with consequences yet to be fully realised.

He said concerns among market observers that oil could exceed $200 a barrel were credible.“I fear that targeting energy facilities, whether production or refineries, will have very serious repercussions for the global economy and fuel prices,” he said.

The Strait of Hormuz, a key maritime chokepoint that previously handled about a fifth of global oil flows, has been disrupted amid the conflict, raising concerns over sustained supply constraints.

Beyond energy markets, Sisi highlighted risks to global food security, citing potential disruptions to fertiliser exports that could drive up agricultural costs and strain supply chains.

“Wealthy countries might be able to absorb this, but for middle-income and fragile economies, it could have a very, very severe impact on their stability,” he said.

Egypt, a longstanding recipient of U.S. military aid and Gulf financial support, has condemned Iranian attacks on Gulf Arab states while advocating diplomatic efforts to avoid a broader regional war.

Gulf Cooperation Council Secretary-General Jasem Mohamed Albudaiwi said Iranian actions, including attacks on energy infrastructure and the closure of the Strait of Hormuz, constituted a violation of international law and a direct threat to global energy security.

Addressing the conference virtually, he urged the international community to safeguard maritime corridors, as GCC member states Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Oman and Bahrain face ongoing drone and missile attacks.

Sisi also referenced Trump’s role in ending the Gaza war, noting that the U.S. president had been instrumental in securing a ceasefire agreement reached in Sharm el-Sheikh in November.