ISLAMABAD: U.S. President Donald Trump has said China may continue buying oil from Iran following a ceasefire between Iran and Israel.
The White House clarified that this does not mean a formal easing of sanctions.
Trump made the statement on Truth Social just days after ordering strikes on three Iranian nuclear sites.
He added that he hopes China will also increase purchases of American crude oil.
A senior official noted Iran had not closed the Strait of Hormuz, easing fears of a supply disruption.
Despite the statement, the White House maintains that sanctions on Iran remain in effect.
Confusion Over Sanctions Enforcement
Trump’s comments triggered a 6% drop in global oil prices on Tuesday.
Analysts said any perceived policy shift could weaken the U.S.’s “maximum pressure” stance on Tehran.
Former CIA officer Scott Modell called it a return to “lax enforcement.”
Modell explained that suspending or waiving sanctions would require extensive coordination among federal agencies.
That includes Treasury licenses, State Department waivers, and Congressional notifications.
Despite this, no official announcement of sanction waivers has been made.
Geopolitical Tensions and Market Impact
Oil experts in Asia believe Trump’s remarks will not immediately affect China’s purchasing behavior.
Iran currently supplies 13.6% of China’s oil imports, mostly to independent “teapot” refineries.
U.S. crude, subject to a 10% Chinese tariff, makes up just 2% of China’s oil imports.
China has long opposed unilateral U.S. sanctions and may resist any pressure to shift suppliers.
Observers warn that more Iranian imports could strain relations with Saudi Arabia.
The Trump administration has not outlined a clear process for changes to sanctions policy.
