Washington: U.S. President Donald Trump stated on Tuesday that China may continue purchasing Iranian oil following a ceasefire agreement between Israel and Iran. However, the White House later clarified that this does not represent a shift in the United States' current sanctions policy on Tehran.
Posting on Truth Social, Trump remarked: "China can now continue to purchase oil from Iran. Hopefully, they will be purchasing plenty from the U.S., also." His comments came just days after he ordered airstrikes on three Iranian nuclear facilities.
White House sources said that Trump was noting the fact that Iran had not attempted to block the Strait of Hormuz—an action that could have significantly disrupted global oil shipments, particularly affecting China, which remains the largest buyer of Iranian crude.
Despite the president's remarks, the official emphasized that the U.S. remains committed to pressuring all nations, including China, to shift toward American oil exports and steer clear of Iranian oil in accordance with U.S. sanctions.
Following the ceasefire and Trump's comments, global oil prices slumped by nearly 6% on Tuesday, with market participants interpreting his remarks as a possible loosening of sanctions enforcement.
Such a change would be a notable departure from Trump's previous stance. Earlier this year, he pledged to reinstate the “maximum pressure” campaign against Iran to curtail its oil exports, targeting the country over its nuclear ambitions and regional proxy networks.
Under his renewed sanctions regime, the Trump administration had targeted Chinese "teapot" refineries and port operators involved in the purchase of Iranian oil. Yet some experts suggest enforcement has softened.
Scott Modell, a former CIA analyst and CEO of Rapidan Energy Group, said, “Trump’s apparent approval for Chinese purchases signals a return to more lenient enforcement.” He added that while Trump is unlikely to formally lift sanctions ahead of potential nuclear negotiations, the lack of enforcement still grants Tehran significant breathing room.
Legal experts, such as Jeremy Paner of Hughes Hubbard & Reed, noted that any suspension of sanctions would require coordinated efforts between the Treasury and State Departments, including the issuance of licenses and congressional notifications.
Still, energy analysts in Asia believe Trump’s comments are unlikely to immediately alter Chinese oil buying behavior. Iran currently supplies about 13.6% of China’s crude imports, with steep discounts benefiting smaller refineries struggling with tight margins. U.S. crude makes up only 2% of Chinese oil imports—partly due to ongoing 10% tariffs imposed by Beijing.
China has historically rejected Washington’s unilateral sanctions as illegitimate, has not commented on Trump's statement yet.
Analysts also warn that expanded Iranian exports could strain U.S. relations with Saudi Arabia, a key ally and the world’s leading oil exporter.
Despite Trump’s tough talk, Modell said the administration's actions have not matched its rhetoric. “Trump may have shown the gun this year with sanctions on Chinese firms, but in reality, the pressure has been closer to a tap than a squeeze,” he said.
When pressed on next steps, State Department spokesperson Tammy Bruce reiterated that Trump had made his position clear. “We are working to ensure the guiding hand of President Trump moves this administration forward,” she said. “The details of how that unfolds will become clear in time.”
[Human Online, Reuters]
