Trump Greenlights China To Buy Iranian Oil

Trump allowed China to buy Iranian oil but also conditioned it to purchase maximum US crude as well. 

Trump’s announcement sparks debate on sanctions policy:

Trump posted on his Truth Social Media in which he stated, “China can now continue to purchase oil from Iran. Hopefully, they will be purchasing plenty from the US, also.” Trump posted this statement right after announcing the ceasefire between Israel, and Iran. However, the White House swiftly clarified that accepting Iranian oil does not mark a relaxation of existing US sanctions on Tehran.

White House clarifies sanctions enforcement still strong:

White House clarifies that accepting Iranian oil does not mean that the US forgot sanctions. A senior White House official stressed that  “The president continues to call on China and all countries to import our state‑of‑the‑art oil rather than import Iranian oil in violation of US sanctions.” Trump urged China to favor US oil but left room for continued Iranian imports under careful scrutiny.

Also Read: Iran Denied Israel’s Allegation Of Attack After Ceasefire

Market reaction:

On Tuesday, Global oil prices dropped nearly 6%. In February, Trump committed to impose maximum pressure on countries so that Iranian exports reach zero. However, Trump’s recent message to China was seen as signaling a momentary easing in tensions.

Expert views:

Former CIA officer and CEO of Rapidan Energy Group stated, “President Trump’s greenlight for China to keep buying Iranian oil reflects a return to lax enforcement standards.” He cautioned that a full reversal of sanctions would require US leadership to suspend or waive executive orders and Congressional sanctions.

No sudden shift expected:

Despite Trump’s encouragement, many in Asia doubt immediate changes. Iranian crude has made up about 13.6% of China’s imports this year, largely due to lower prices. By contrast, US oil accounts for only 2% of Chinese imports, restricted by a 10% tariff discouraging further purchases.

Officials in Asian commodity markets expressed skepticism over a sudden pivot toward US oil. They are expecting China to proceed cautiously thus balancing economic interests with diplomatic pressure.

Geopolitical ripples:

China has long criticized the US as engaging in “abuse of illegal unilateral sanctions.” Its embassy in Washington has not yet responded to Trump’s statement. Increased Iranian crude flowing to China may also alarm Saudi Arabia. Any dip in Saudi-led supply could destabilize their near-monopoly and shift regional energy dynamics.

Balancing act:

According to Modell, Trump may have metaphorically “flashed the Glock” by sanctioning Chinese traders and Iranian-terminal operators; enforcement remains limited. State Department spokesperson Tammy Bruce stated, “We are focused on making sure that the guiding hand of President Trump prevails.” He did not provide any specifics on how sanctions would be maintained or adjusted.