U.S. President Donald Trump today announced that China would be allowed to resume oil purchases from Iran following a ceasefire agreement between Israel and Iran—signaling a possible easing of U.S. sanctions enforcement.
“China can now continue to purchase oil from Iran. Hopefully, they will be purchasing plenty from the U.S. also,” Trump said in a post on social media.
His remarks came just hours after Israel agreed to halt military action against Iran, marking a de-escalation in a volatile regional conflict. Trump, who had shown hesitation toward deeper American involvement in the war, played a central role in pushing both sides toward a fragile ceasefire.
Market reactions were swift. Oil prices dropped sharply and global markets rallied on Tuesday as fears of a prolonged conflict eased. Analysts said the ceasefire also reduced concerns that Iran might attempt to close the Strait of Hormuz, a critical maritime route through which roughly 20% of global oil supply flows.
West Texas Intermediate crude fell more than 8% to about $67 per barrel on Monday afternoon, with prices dipping to $65 in extended trading. Brent crude, the international benchmark, slipped to $70 a barrel.
Trump’s administration has enforced a hardline sanctions regime on Iran since pulling out of the 2015 nuclear deal in 2018, targeting Iranian oil exports and penalizing companies—especially in China—for violating sanctions. Three major Chinese oil importers were sanctioned during Trump’s term, significantly reducing purchases from Tehran.
However, with tensions cooling in the Middle East and economic concerns mounting, Tuesday’s comments suggest a shift toward more flexible enforcement—potentially opening the door for renewed trade flows between Iran and its top oil buyer, China.
Just a week ago, energy experts warned that a shutdown of the Strait of Hormuz by Iran could cause oil prices to spike as high as $120 per barrel. The new ceasefire has alleviated those fears—for now.
