China's crude imports from Iran surged last month before the United States ended the waivers that allow Iran's customers to purchase oil.
The United States warned Hong Kong to be alert for vessels carrying Iranian petroleum that seeks a stopover in the Asian Financial hub.
The Data from the General Administration of Customs of China revealed that the country purchased 3.24m tonnes of Iranian crude oil in April, increasing by 21 percent year-on-year. The Iranian oil import of China has increased by 4 percent from March to April.
The increase in imports from the Middle Eastern country came before the waivers issued by the United States ended. The waivers to purchase oil were given to eight nations including China in April.
The United States wants to bring Iran's crude exports "to zero", placing pressure to the Iranian government to submit to the demands of the United States on the Iran Nuclear Deal. Analysts believe that China will entirely end its import of Iranian oil.
According to Li Li, director of research at ICIS, a petrochemical consulting firm, China will continue to purchase but a big drop in volumes will be expected to satisfy United States authorities.
An Iranian energy sector businessman with links to the political establishment said that a drop in China's oil imports is expected but they will continue purchases whether officially or unofficially.
Recently, the United States warned Hong Kong to watch for a vessel that carries Iranian petroleum that may seek rest in its port. The United States claims that the vessels providing the services will be violating United States sanctions.
Shipping data on Refinitive said that the Pacific Bravo changed course on Monday to head towards Sri Lanka. It is originally destined to go to Indonesia but sources claim that it is going to China. According to a senior United States official, anyone who does business with this ship, the Pacific Bravo, would be exposing themselves to United States sanctions.
The official said that the ship is owned by China's Bank of Kunlun. The bank is known as the official channel for monetary transactions between China and Iran since the last round of sanctions started in 2012. CNPC Capital, China National Petroleum Corp's listed financial arm, owns the majority of shares in the Bank.
The United States official thinks that it's critical for the Hong Kong Marine Authority to ensure it knows who it's allowing into its territorial waters, into the Hong Kong port, and to ensure that it knows who Hong Kong entities are providing services to.
