Major Asian refiners are exercising caution in purchasing Iranian crude, even after a 60-day US sanctions waiver took effect on Sunday.
Buyers are weighing compliance risks and the potential for renewed hostilities between the US and Iran before committing to new contracts.
The hesitation suggests that the waiver may not immediately translate into a significant surge in Iranian exports to the region.
The lack of interest from large-scale refiners leaves independent Chinese refineries as the primary destination for Tehran's crude.
These smaller operators have historically been more willing to navigate the complex regulatory landscape surrounding Iranian oil.
However, their capacity to absorb large volumes is limited compared to state-owned giants in India, South Korea, and Japan.