How China’s ‘teapot’ refineries are cushioning it from Iran war oil crisis

China's independent refineries, colloquially known as "teapot" facilities, are enabling the country to maintain Iranian oil imports despite geopolitical tensions. These small, private refineries operate with greater flexibility than state-owned counterparts and can more easily absorb compliance risks associated with U.S. sanctions on Iran. The arrangement allows China to sustain a crucial energy relationship with Iran while maintaining plausible deniability through decentralized purchasing. Iran has become increasingly dependent on Chinese demand as a lifeline amid international isolation, making these informal supply chains critical to both nations' economic interests. The setup illustrates how China's fragmented refining sector can work around international pressure in ways that large, state-controlled operations cannot.