According to Bloomberg news agency, which cited two officials familiar with the negotiations, Beijing, however, agreed not to increase purchases of Iran's crude.
Repeating the pattern of past weeks, crude prices on Friday ended the week down by 0.4 percent for West Texas Intermediate and 1.5 percent for Brent, this time in reaction to China state oil major Sinopec cutting its purchases of us product due to the trade spat between both countries.
Francis Fannon, the assistant secretary of state for the Bureau of Energy Resources, was recently in China to discuss sanctions, according to a State Department spokesperson.
Purchases from Iran could slow from August as imports from Tehran are getting tougher after the United States in May pulled out of a 2015 nuclear deal and announced the renewal of sanctions against Tehran.
"It's a jittery feel here, as long as we have Iranian sanctions uncertainty and tariff uncertainty, and it doesn't take much to spark a significant swing one way or the other", said Jim Ritterbusch, an analyst in Galena, Illinois.More news: Saudi Arabia expelling Canadian ambassador
As an original signatory, the U.S. also pledged to waive secondary sanctions as long as Iran continued to abide by the deap.
In Saudi Arabia, 10.29 million barrels per day were produced by the Middle East's largest power, a surprising decline of nearly 200,000 bpd, and the decline is hitting oil markets twice as hard as the decline in production amounts is announced amidst a supposed period of production increases by OPEC.
Washington has also threatened to punish companies that do not stop importing Iranian oil by November 4, when sanctions on the country's oil, gas and shipping industries are set to be imposed.
Iranian President Hassan Rouhani has warned the USA against any attempt to stop Tehran's oil trade, threatening to block the strategically important Strait of Hormuz.
"The Americans say they want to reduce Iranian oil exports to zero".More news: Former Marine's wife being deported to Mexico
Trump's policies are already putting significant pressure on the Iranian economy, although U.S. intelligence suggests they may ultimately rally Iranians against the United States and strengthen Iran's hardline rulers, officials say.
Also last month, China, which is Iran's biggest customer, said it did not accept unilateral sanctions against Iran.
"China and Iran unwaveringly maintain normal trade and economic ties".
The official confirmed that during July delegations would be dispatched to Beijing and Delhi to press home the case, having already visited the capitals of other major Iranian oil importers.
Last month around 35 percent of Iranian oil exports went to China.More news: Manchester United to sign Toby Alderweireld in next 48 hours
What's next for Iran oil?