Iran and its biggest oil customer China have agreed to change the terms of their long - term oil deal to a delivered ex - tanker , 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 . “This is not the first time companies exercised the option... In July , all 17 tankers chartered to deliver Iranian oil to China were operated by National Iranian Tanker Co. ( NITC ) , with a load of 23.8 million barrels of crude .
Iran and its biggest oil customer China have agreed to change the terms of their long - term oil deal to a delivered ex - tanker , 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 . In July , all 17 tankers chartered to deliver Iranian oil to China were operated by National Iranian Tanker Co. ( NITC ) , with a load of 23.8 million barrels of crude .