Iran produces around 3.5 million barrels of oil per day, and its crude continues to attract strong global demand due to competitive pricing and an extensive logistics network developed over years of sanctions and economic pressure, analysts say.

Experts note that Iran not only offers relatively cheaper crude but also provides discounted supplies that are difficult for other producers to replicate in the current market.

ALSO READ: ‘Willing To Live With It’: Trump's Bizarre Remark On 160 Iranian Schoolgirls' Killing; Is US Behind The Strike?

Iran primarily exports two main crude grades, Iran Light and Iran Heavy:

Iran Light has an API gravity of about 33 to 36 degrees and a sulfur content of roughly 1.46 per cent, making it suitable for producing gasoline and diesel.

Iran Heavy, on the other hand, is thicker and contains higher sulfur levels. This grade is generally processed by refineries equipped to handle sour crude, which contains greater amounts of sulfur.

Iranian crude typically sells at a discount of USD 3 to USD 9 per barrel compared to Brent crude, making it attractive to buyers. Analysts estimate that the cost of extracting Iranian oil is about USD 10 per barrel, allowing buyers to secure substantial margins.

Beyond pricing, technological improvements in refining have increased the demand for heavier, high-sulfur crude oils. Modern deep-conversion refineries are specifically designed to efficiently process such grades, making Iran’s historically less valuable heavy crude more commercially viable.

China remains the largest buyer of Iranian crude. In 2024, it accounted for more than 90 per cent of Iran’s total oil export revenue, importing crude worth approximately USD 32.5 billion.

Data suggests the trade relationship between the two countries is largely driven by economic benefits rather than political sentiment.

ALSO READ: Middle East War Jitters: Innovision, Rajputana Stainless IPOs See Tepid Response, GMP Remains Flat

Western officials also believe that around USD 8.4 billion in oil payments in 2024 moved through a covert oil-for-infrastructure arrangement, where Chinese buyers’ payments were redirected to Chinese-backed construction projects within Iran.

Officials say Iran’s use of an “illicit oil fleet” to transport crude has further complicated Western sanctions enforcement, turning maritime monitoring into what analysts describe as a “game of hide-and-seek.”