China is considering a new light crude oil contract with Iran that according to Reuters could raise imports from Iran causing tension with the United States.

US sanctions against Iran have restricted international companies from dealing with Iran at the risk facing heavy fines.

The November deal in Geneva between Iran and the 5+1 is an agreement to pause further sanctions in an effort to forge a mutually acceptable deal regarding Iran’s nuclear program.

Reuters reports that it is not yet clear by how much China is planning to raise its oil imports from Iran, but according to industry sources, “Chinese state-trader Zhuhai Zhenrong Corp, which was sanctioned by Washington in early 2012 for supplying gasoline to Iran, is in talks with the National Iranian Oil Company (NIOC) for a new contract for condensate” in the coming year.

Reuters also reports that India is also looking at increasing its oil imports from Iran in view of the progress achieved in the nuclear negotiations between Iran and the world powers.

Iran’s Asian oil purchasers have significantly reduced their transactions with Iran under pressure from the US and Iran’s oil exports have dropped by fifty percent in the past year.