Trump says China can buy Iranian oil, signalling policy shift

“China can now continue to purchase Oil from Iran,” Trump wrote on Truth Social, “Hopefully, they will be purchasing plenty from the US, also. It was my Great Honor to make this happen!”

In May, Trump had threatened to bar any country that bought Iranian oil from doing business with the United States.

China remains the dominant buyer of Iranian crude, accounting for the bulk of the country’s 1.7 million barrels per day in exports, according to data from Kpler, data and analytics firm that tracks global commodity flows.

Trump’s announcement comes after nearly two weeks of fighting between Iran and Israel, which began with Israeli airstrikes on Tehran on June 13. A ceasefire agreement was reached Monday evening, following US airstrikes on three Iranian nuclear sites over the weekend. The US said its objectives had been met.

Speaking to reporters aboard Air Force One, Trump said Iran “is not going to have enrichment and they're not going to have a nuclear weapon,” adding, “They're going to get on to being a great trading nation.”

Oil prices have now tumbled to levels last seen before the Israeli strikes began, as investor fears of a major supply disruption in the Middle East ease.

Initial concerns had surged after the US joined Israel’s campaign, prompting speculation that Iran might retaliate by targeting oil flows from the Persian Gulf.

Traders were particularly watching whether Tehran would attempt to close the Strait of Hormuz — the narrow waterway linking the Persian Gulf and the Gulf of Oman — through which 20% of the world’s crude flows.

It remains a critical artery for oil exports from Iran, Saudi Arabia, the UAE, Iraq, Kuwait, and Bahrain.