Russian sanctions impacting Iranian crude sales
November 25, 2025
The energy market continues to sell off as hopes for a peace deal between Russia and Ukraine still glimmer.
The additional sanctions the US imposed on Russian oil companies took effect yesterday. Reports continue to surface about how much oil Iran has stored on ships on the water, proving that the sanctions are having an impact on Iranian and Russian oil sales. Iran reportedly has 52 million barrels of crude stored on ships at sea with no buyers. That’s a two-year high and double what Iran had in sea cargo since the end of October. Iranian crude stored at sea was only 5-10 million barrels at the beginning of the year. China typically buys about 90% of Iran’s exports and has been cutting back until it can figure out a workaround to the US sanctions.
President Trump had a phone call with Chinese President Xi and expressed confidence that the momentum in US-China relations will continue. Improving relations between the two countries continues to offer some hope and puts selling pressure on prices.
The oil market remains range-bound ahead of the weekly petroleum stocks report. The market will continue to look for further developments on a peace proposal to end the Russian invasion of Ukraine. Market observers will also weigh any economic news alongside increasing expectations that the Fed will cut interest rates at its December meeting.