Iranian crude exports to China have climbed to their highest level since March at more than 1.7mn barrels per day (bpd) due to sellers increasing shipments to avoid the effects of the recent conflict between Israel and Iran, according to a Bloomberg report.

Data used by the report was compiled by energy analytics company Vortexa – which highlighted that loadings had reached their peak at 2.5mn bpd in the first 12 days of June, preceding Israel’s attack on Iran on the 13^th of that month. This significant uptick represented trader anxiety in anticipation of geopolitical instability and threats of potential attacks at the time.

Senior market analyst at Vortexa Emma Li told Bloomberg that June data showed that traders were willing to source a “faster and more flexible workaround to secure feedstock in the face of perceived supply disruptions,” and continued to note that US sanctions on Iran would likely not have an impact on crude trade.

Despite this overall positive outlook for Iranian traders, purchases of oil from small, independent refineries in China – otherwise known as ‘teapot’ refineries’ located mostly in Shandong province – are set to slow as the plants lower processing thanks to thinner margins. According to MysteelOilchem – a data provider for energy and chemical industries in China – average production rates at such refineries have decreased to approximately 46%.

Large amounts of Iranian oil out on the market are now also affecting Iran’s position, with private refiners often getting more space to negotiate increased discounts, according to Li. Vortexa data also highlights Iranian crude is currently sold at $4 per barrel below Brent futures compared to $2 below Brent futures in May.

Despite a downturn in oil purchases, China’s custom is not disappearing anytime soon. The country remains the world’s biggest buyer of Iranian crude, and continues to trade with the sanctioned country despite US objections – even if this trade is conducted through hidden shipments and nondescript middlemen.