Trump Allows China to Buy Iranian Oil, Encourages Purchase of US Crude

United States President Donald Trump stated on Tuesday that China can continue to buy Iranian oil following a ceasefire agreement between Israel and Iran. The White House clarified that this does not imply a relaxation of US sanctions.

Trump mentioned on Truth Social, \"China can now continue to purchase oil from Iran. Hopefully, they will be purchasing plenty from the US, also.\" This comes after the recent US bombings of three Iranian nuclear sites.

A senior White House official noted that Iran has not attempted to close the Strait of Hormuz, which would have posed challenges for China, the top importer of Iranian oil.

The official emphasized Trump's call for China and other countries to import US oil instead of Iranian oil in violation of US sanctions.

Trump's comments on China post-ceasefire led to a drop in oil prices by nearly 6 per cent on Tuesday. Any relaxation of sanctions on Iran would signify a shift in US policy after Trump's previous stance of maximum pressure on Iran to reduce its oil exports to zero.

Trump had imposed sanctions on Chinese refineries and port operators for buying Iranian oil. This move has been viewed as a return to lenient enforcement standards by some experts.

Experts suggest that Trump may not lift sanctions before upcoming US-Iran nuclear talks, as they serve as leverage in negotiations.

Oil traders in Asia do not anticipate an immediate impact on Chinese oil purchases from either Iran or the US due to Trump's remarks.

China's opposition to US sanctions and its potential increase in Iranian oil purchases could affect US ally Saudi Arabia, the largest oil exporter globally.

The impact of US sanctions on Iran's oil exports has been limited, despite Trump's firm stance on Tehran.

State Department spokesperson Tammy Bruce stated that Trump has indicated his preferences, and the administration is working towards that goal without revealing the specific process.