Trump Encourages US Crude Oil Exports While Allowing China to Continue Buying Iranian Oil
After a ceasefire agreement between Iran and Israel, former President Donald Trump said that China could keep buying Iranian oil. This led to a surprising focus on US crude oil exports. Trump’s comments on Truth Social sparked a discussion about possible changes in how the U.S. enforces sanctions, but the White House later made it clear that there is no official easing of restrictions on Iranian oil.
“China can now keep buying oil from Iran. Trump wrote this just days after ordering strikes on Iranian nuclear facilities. “Hopefully, they will also buy a lot from the U.S.” His comments brought attention to China’s dependence on Iranian oil and the strategic importance of the Strait of Hormuz, a key shipping route that, if closed, would have made it harder for Beijing to get energy.
While his remarks hinted at flexibility, a senior White House official emphasized that the administration continues to encourage all nations, especially China, to prioritize US crude oil exports over sanctioned Iranian oil.
.Trump brought back the “maximum pressure” campaign to stop Iran from exporting oil because of its nuclear ambitions, but critics say that enforcement has become less strict lately. Scott Modell, a former CIA officer and current energy analyst, said that Trump’s new stance could mean that standards will become more lenient again. He said that even though there had been earlier crackdowns, the most recent ones have been closer to “minimum pressure.”
Trump had previously used sanctions to go after China’s independent “teapot” refineries and port operators, but his most recent comments seem to show a change in tone. Still, Modell believes Trump is unlikely to formally waive sanctions before any upcoming U.S.-Iran nuclear negotiations, using the sanctions as leverage
No Immediate Impact Expected
Asian oil market experts were doubtful that anything would change right away. Chinese refineries are still buying cheap Iranian oil, which now makes up about 13.6% of their imports. On the other hand, US crude oil exports make up only 2% of the total, and a 10% tariff from Beijing makes it even harder.
Jeremy Paner and other legal experts say that suspending or waiving sanctions against Iran would require a lot of coordination between different government agencies. The U.S. Treasury and State Department would have to give licenses and waivers, which would require notifying Congress. This is a long process that hasn’t started yet.
China’s ongoing purchase of Iranian oil and refusal to follow U.S. sanctions could also hurt relations with Saudi Arabia, which is a major U.S. ally and the world’s biggest oil exporter. Trump’s push for more US crude oil exports is seen as part of a bigger plan to make the US a bigger player in the energy market during times of global instability.
The administration hasn’t said exactly what will happen yet, but officials say Trump’s intentions are clear and actions will follow.
