The jump in Iranian exports also came ahead of the reimposition of sanctions by the US international buyers of Iranian oil on Nov. 4 to wind down contracts in oil, energy, shipping and insurance sectors, a US Treasury Department fact sheet showed. Beijing and Tehran, meanwhile, have agreed to bolster strategic cooperation during Iranian President Hassan Rouhani's visit to China in June.
Yet, some traders remained concerned that if US sanctions resumed in November, Chinese importers might stop taking LPG from Iran and seek even more alternatives from other Middle East sources, which could further drive up cargo prices from that region. This month, Chinese importers had snapped up spot LPG cargoes offered by Middle Eastern producers and have recently resold a number of cargoes that traders said could be of US origin, as China prepared to impose a 25% tariff on US propane and butane imports, which kicked in last Thursday, according to Financial Tribune.