China's imports from Iran averaged 465,000 barrels per day for the first quarter of 2008. June imports dropped to 286,000 barrels per day, the Iranian Press TV reported.

Beijing officials said the decreased import was due to a rise in the cost of refining light crude from Tehran. Tehran responded by storing some crude in offshore facilities, which it said would be released at some point during the summer.

Iran is the third-largest crude oil exporter to China.