"China
can now continue to purchase Oil from Iran. Hopefully, they will be purchasing
plenty from the US, also," Trump said in a post on Truth Social, just days
after he ordered US bombings of three Iranian nuclear sites.
Trump was drawing attention to no attempts by Iran so far to
close the Strait of Hormuz to oil tankers, as a closure would have been hard
for China, the world's top importer of Iranian oil, a senior White House
official told Reuters.
"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 US sanctions," the
official said.
After
the ceasefire announcement, Trump's comments on China were another bearish
signal for oil prices, which fell nearly 6%.
Any relaxation of sanctions enforcement on Iran would mark a
US policy shift after Trump said in February he was re-imposing maximum
pressure on Iran, aiming to drive its oil exports to zero, over its
nuclear program and funding of militants across the Middle East.
Trump imposed waves of Iran-related sanctions on several of
China's so-called independent "teapot" refineries and port
terminal operators for purchases of Iranian oil.
"President
Trump's green-light for China to keep buying Iranian oil reflects a return to
lax enforcement standards," said Scott Modell, a former CIA officer, now
CEO of Rapidan Energy Group.
In addition to not enforcing sanctions, Trump could suspend
or waive sanctions imposed by executive order or under authorities a president
is granted in laws passed by Congress.
Trump will likely not waive sanctions ahead of coming rounds
of US-Iran nuclear talks, Modell said. The measures provide leverage given
Tehran's demand that any deal includes lifting them permanently.
Jeremy
Paner, a partner at Hughes Hubbard & Reed law firm, said if Trump chooses
to suspend Iran oil-related sanctions, it would require lots of work between
agencies.
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