President Trump dropped a geopolitical bombshell: in a post on Truth?Social, he announced that "China can now continue to purchase Oil from Iran. Hopefully, they will be purchasing plenty from the US, also."
This declaration signals a notable pivot from the so-called "maximum pressure" campaign Trump reinstated in February?2025, which aimed to slash Iranian oil exports to near zero. Instead, Trump appears to be leveraging this concession to coax China into importing American energy—linking geopolitical maneuvers with trade incentives.
Coming on the heels of his announcement of a tentative Israel?Iran ceasefire, this move underlines Trump’s transactional diplomacy: brokering Middle East calm in exchange for strategic trade gains. While U.S. airstrikes targeted Iran’s nuclear facilities, Trump now extends clemency to China on its Iranian oil imports—a calculated reward for non-interference and trade cooperation.
Analysts stress this isn’t about oil prices—the real story lies in Trump’s attempt to transform U.S. diplomatic leverage into economic advantage. China, which silently eyed the ceasefire, refrained from harsh backlash and kept its vital Iranian oil lifeline intact. In return, Trump wants China to import more American oil—a potential win for U.S. producers and domestic energy policy.
It’s a high-stakes game: Washington loosens pressure on Iran to coax China away from Iranian energy, swap dependence for U.S. barrels, and reward restraint. But Beijing—aware of cheaper Iranian and Russian sources—may balk.
We’re witnessing a new fusion of military brinksmanship with economic brinkmanship. Trump’s message is clear: de-escalation gets rewarded, and oil becomes the currency. Whether Beijing takes the deal, and whether Tehran stays in line, remains to be seen.
By Julianne Geiger for Oilprice.com
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China has never recognized US sanctions against Iran, Russia or Venezuela and has continued to defy US sanctions and openly import crude oil from them. In fact it derived great satisfaction from defying US sanctions.
And while Trump's gesture towards China is an acknowledgement of the futility and ineffectiveness of the sanctions, it could still be interpreted by many observers as a goodwill gesture towards China aimed at improving the trade atmosphere between them and encouraging China to resume importing more US oil, LNG and agricultural products.
Dr Mamdouh G Salameh
International Oil Economist
Global Energy Expert