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President Donald Trump gave his blessing on Chinese purchases of Iranian oil on Tuesday, though his comments do not involve a formal shift in policy, the White House says.
Trump announced the move in a social media post while flying to Europe on Air Force One, adding that he hopes China will also purchase "plenty" of oil from the U.S.
"China can now continue to purchase Oil from Iran. Hopefully, they will be purchasing plenty from the U.S., also. It was my Great Honor to make this happen!" Trump wrote.
Oil prices continued to drop and markets surged Tuesday as Trump battered Iran and Israel into accepting a precarious ceasefire agreement. The agreement has curbed concerns that Iran would shut down the Strait of Hormuz, a key trade route for shipping oil across the globe.
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President Donald Trump cleared the way for China to purchase oil from Iran on Tuesday. (Reuters / Reuters Photos)
Crude hit $65 per barrel in extended trading after West Texas Intermediate crude futures fell more than 8% to about $67 per barrel on Monday afternoon. Brent crude, the international benchmark, fell to $70 a barrel.
Washington reinstated sanctions on Tehran in 2018, and Trump's administration has imposed several new rounds of sanctions on Iran's oil trade since taking office in January.
Trump's sanctions still include penalties on three Chinese oil import companies, which led to curtailed buying. A senior White House official clarified that Trump's comments did not involve a formal policy shift.
"The President was simply calling attention to the fact that, because of his decisive actions to obliterate Iran’s nuclear facilities and broker a ceasefire between Israel and Iran, the Strait of Hormuz will not be impacted, which would have been devastating for China. The President continues to call on China and all countries to import our state-of-the-art oil rather than import Iranian oil in violation of U.S. sanctions," the official said.
U.S. President Donald Trump stops and talks to the media before he boards Marine One on the South Lawn at the White House on June 15, 2025, in Washington, DC. (Tasos Katopodis/Getty Images / Getty Images)
Last week, industry experts warned that Iran shutting down the Strait of Hormuz could cause prices to surge to as much as $120 a barrel.
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Roughly 20% of the world's oil supply travels through the strait, though closing it would significantly hurt Iran's own revenue. Energy Secretary Chris Wright dismissed concerns about its closing on Tuesday, telling Fox News that the move would harm Iran more than it would anyone else.
"The United States today is a net oil exporter. We don't count in any meaningful way on oil coming out of that strait. Iran would harm itself more than it would harm anyone else. It'll probably cause a mess or trouble, but it'll be small," Wright said.
Reuters contributed to this report.