The sanctions were imposed to Cosco on September 25, 2019, an action that affected the shipping industry and the oil traders and companies that had been collaborating with the Chinese shipping company.

This part of the lift follows US and China's trade talks on beginning the 'phase one' deal, after signing truce on January 15.

It is reported that a US official commented that lifting sanctions on only one of the COSCO subsidiaries would allow the Trump administration to retain leverage on China and COSCO to stop taking Iranian oil.

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Following the US sanctions to China, Bloomberg had reported that the costs of oil tankers were rapidly increasing.

Prior to the lifting of the sanctions, Platts noted that VLCC freight rates on the USGC-China route have already dropped 18% in the past week, whereas an analyst EA Gibson added that tanker rates are expected to decline further with the re-emergence of Cosco Dalian ships.

Concluding, four other Chinese companies continue to remain on the sanctions list, namely China Concord Petroleum, Kunlun Holding, Kunlun Shipping, and Pegasus 88.