It was not immediately clear how Iran would provide insurance for the Chinese oil purchases, worth some $1.5 billion a month. Iran and its biggest oil customer China have agreed to alter the terms of their long-term oil deal to a delivered ex-ship, basis, so that Iran will cover all the costs and risk of delivering crude, along with handling the insurance for oil shipments. The move is in response to the US re-imposing sanctions on the Middle Eastern country and differs from the previous free-on-board terms. According to Reuters, Iran's Oil Minister Bijan Zanganeh said Tehran would be able to pay shipping fees as well as other expenses incurred by ships carrying Iranian crude if they are not damaged or sunk.
Iran and its biggest oil customer China have agreed to alter the terms of their long-term oil deal to a delivered ex-ship, basis, so that Iran will cover all the costs and risk of delivering crude, along with handling the insurance for oil shipments. The move is in response to the US re-imposing sanctions on the Middle Eastern country and differs from the previous free-on-board terms. According to Reuters, Iran's Oil Minister Bijan Zanganeh said Tehran would be able to pay shipping fees as well as other expenses incurred by ships carrying Iranian crude if they are not damaged or sunk.