President Donald Trump lit a political fuse Tuesday by declaring that China “can now continue to purchase oil from Iran,” following his brokered ceasefire between Israel and Iran—while insisting this does not signal a loosening of U.S. sanctions. “Hopefully, they will be purchasing plenty from the U.S., also,” he added in a post on Truth Social.
The White House clarified Trump’s message was aimed at highlighting Iran’s decision not to close the Strait of Hormuz—a move that would have severely disrupted China’s energy supply. A senior official emphasized the president’s ongoing appeal to China and other countries to import American oil rather than Iranian crude in defiance of U.S. sanctions.
Markets reacted swiftly. Oil prices plunged nearly 6% after his remarks, compounding losses driven by ceasefire optimism . Meanwhile, U.S. markets surged: the Nasdaq 100 hit record highs, buoyed by easing geopolitical tensions and potential Fed rate cuts.
While Trump’s language suggests a softer sanctions posture, experts caution that no formal rollback has occurred. Scott Modell, former CIA and Rapidan Energy Group CEO, described the move as “return to lax enforcement standards,” noting that sanctions remain, and any official suspension would require Treasury licences, State Department waivers, and likely congressional notification.
Moreover, China continues to be the primary buyer of Iranian oil—accounting for nearly 90% of Iran’s exports at around 1.38 million barrels per day—primarily through discounted “teapot” refiners in coastal provinces.
These “ghost fleet” tankers, often unmarked, also help conceal the origins of Iranian crude.
Beijing, which has long condemned U.S. sanctions as “illegal unilateral abuse,” maintained a cautious stance—welcoming the ceasefire but avoiding overt praise for Trump’s remarks.
Strategically, Trump appears to be leveraging ceasefire diplomacy as pressure in broader trade engagements with China. Politico notes this aligns with his pattern of combining geopolitical and economic incentives.
Yet analysts remain skeptical that China will significantly pivot toward U.S. crude, given the persistent price advantages and volume offered by Iran and Russia.
For now, Trump’s sanction‑signal remains a bluff: rhetorically permissive, but without dismantling the legal framework nearby. However, should Iran‑U.S. nuclear talks progress, enforcement could be quietly eased, providing Washington with diplomatic leverage without overt policy reversal.
