Trump Lets China Buy Iran Oil Amid Sanctions Shift
Former U.S. President Donald Trump said that China can now continue buying oil from Iran. He also added that he hopes China will buy more oil from the United States, too. Trump shared this message on his social media platform, Truth Social, just days after ordering airstrikes on three Iranian nuclear sites.
A White House official told Reuters that Trump was pointing out how Iran hasn’t blocked the Strait of Hormuz—a key waterway for oil transport. Blocking it would have hurt China, which is the biggest buyer of Iranian oil.
The official added, “President Trump still wants China and other countries to buy American oil instead of Iranian oil, which goes against U.S. sanctions.”
After a ceasefire was announced, Trump’s comments made oil prices fall nearly 6% on Tuesday, as investors saw it as a sign that more Iranian oil could be sold in the market.
This might be a change in U.S. policy. In February, Trump had said he would increase pressure on Iran, trying to stop all of its oil sales. He wanted to punish Iran for its nuclear activities and support of militant groups in the Middle East.
Trump Says China Can Keep Buying Oil from Iran
Earlier, Trump had placed several sanctions on Chinese refineries and ports for buying oil from Iran.
Scott Modell, a former CIA officer and now CEO of an energy group, said that Trump’s allowing China to buy Iranian oil shows a softer approach to enforcing sanctions.
Trump could also pause or lift some sanctions using powers given to the president by U.S. laws. However, Modell thinks Trump will not lift sanctions completely before the next round of U.S.-Iran nuclear talks. Keeping sanctions in place gives the U.S. more power in negotiations, especially since Iran wants them lifted permanently.
Jeremy Paner, a legal expert, said that if Trump chooses to pause oil sanctions on Iran, it would involve a lot of coordination between U.S. government departments. The Treasury Department would need to give licenses, and the State Department would need to notify Congress.
Oil experts in Asia said Trump’s words are unlikely to immediately affect how much oil China buys from Iran or the U.S.
So far this year, Iran has provided about 13.6% of China’s oil. China buys it at lower prices, which helps smaller oil companies. In contrast, U.S. oil makes up only 2% of China’s oil imports, partly because of China’s 10% tariff on U.S. oil.
China’s Reaction and Saudi Concerns
China has always disagreed with U.S. sanctions, calling them unfair and illegal. China’s embassy in Washington did not comment on Trump’s statement.
If China and other countries start buying more Iranian oil, it could upset Saudi Arabia, America’s close ally and the world’s top oil exporter.
Although Trump imposed sanctions during his earlier time in office, Iran has still been able to sell some oil. Modell said Trump had made some moves against Chinese oil companies this year, but they didn’t have a strong impact.
Tammy Bruce, a U.S. State Department spokesperson, said Trump had made his goals clear and his team is working to carry them out. She didn’t give more details but said, “We’ll have to wait and see how this plays out.”
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