Trump says China can buy Iran’s oil, relieving pressure
Donald Trump alleviates constraints on Iran by stating that China is permitted to purchase its oil. US President Donald Trump indicated that China may persist in acquiring oil from Iran, thereby unexpectedly alleviating the “maximum pressure” previously exerted by the US on the economic foundation of the Middle Eastern nation. The transition occurs shortly after Trump announced that Iran and Israel had reached a ceasefire agreement, which experienced an unstable beginning marked by initial violations from both parties. The recent US airstrikes targeted multiple nuclear facilities in the Islamic Republic on Sunday, representing a strategic offensive designed to prevent Tehran from acquiring an atomic weapon.
Oil prices continued to decline following Trump’s remarks, with West Texas Intermediate futures dropping approximately 5% to nearly $65 a barrel as of 10 a.m. in New York. The market experienced a significant decline as concerns regarding oil supply disruptions stemming from the Israel-Iran conflict diminished. “China can now continue to purchase oil from Iran,” the president stated in a post on Truth Social on Tuesday. It represents a significant shift for a president who, just a month ago, was adamantly asserting that all transactions involving Iranian oil or petrochemical products “must stop, NOW!”. According to him, buyers would face secondary sanctions and be barred from conducting any business with the United States.
The threat was predicated on earlier admonitions from his administration. In February, Treasury Secretary Scott Bessent indicated that Washington aimed to reduce Iran’s oil exports to below 10% of current levels, as it reinitiated the “maximum pressure” strategy utilized during Trump’s first term. The sanctions aimed to compel Iran to willingly relinquish uranium enrichment, thereby ensuring it would not find itself in a position to acquire a nuclear weapon. While the US airstrikes over the weekend seem to have significantly impacted the nation’s nuclear facilities, the International Atomic Energy Agency remains uncertain about the fate of Tehran’s stockpile of 409 kilograms (902 pounds) of highly-enriched uranium — potentially sufficient for 10 nuclear warheads.
The United States has imposed sanctions on numerous oil tankers involved in the transportation of Tehran’s petroleum. In the absence of a relaxation of these measures, certain buyers may adopt a more cautious stance. The White House has taken aim at Chinese entities involved in the purchase of Iranian oil, a move that may induce caution among other potential buyers. Similarly, secondary sanctions on Iran’s sales continue to be enforced at this moment, and it remains uncertain how the president’s statements will impact those sanctions.
