U.S. President Donald Trump Tuesday stunned strategic thinkers with a statement soon after scoring diplomatic success with Israel-Iran ceasefire, when he said China could continue to buy Iranian oil and hoped that Beijing would also purchase a lot of American oil.
In a social media post, Trump said, “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.”
Since the start of his second White House term, Trump has not only continued U.S. policy to pressure China on strategic and international issues that challenge American interests but also sought to introduce high tariffs on Chinese imports in a move of high stakes.
So, is the statement a positive signal to China as the two countries work to firm up a trade deal, for which they agreed on a framework in London a couple of weeks?
Washington has long imposed sanctions on Iranian oil trade, calling any clandestine commerce as illegal.
In that perspective, could allowing China and Iran to continue to trade oil mean a turning back on the approach?
Iran exports around 90% of its crude oil to China, despite U.S. Treasury Departments wide-ranging sanctions.
According to Bloomberg news service, a senior White House official indicated that the U.S. sanctions would remain in place, and that the president continues to ask China and others to import American oil rather than Iranian, which would constitute a violation of U.S. sanctions.
The official explained that Trump’s post was meant to underscore that his actions – during the Israel-Iran war leading to ceasefire – made it possible that the Straits of Hormuz remained open, which in the case of closure would have impacted China’s oil imports.
Israel-Iran Ceasefire: Crude oil prices decline in world markets
But some experts see it as a smart move on Trump’s part to use diplomatic leverage to America’s economic advantage.
Oli Price, a leading source of energy news, noted that Trump’s statement isn’t about oil prices. The real story lies in Trump’s attempt to transform U.S. diplomatic leverage into economic advantage, it said.
“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,” a report on Oil Price website noted.
Still, some experts say the statement is neither clear nor vague but a realistic view of the situation.
Israeli attack on Iran quickly impacts four key areas of world economy
Arif Ansar, an expert at Politact think tank, says Trump’s statement could be interpreted in many ways. For example, he said, it may be a gesture or quid pro quo in response to China either helping in the background in dealing with the Middle Eastern situation or Beijing just not reacting too strongly which would have complicated the matters.
Analysts say Trump is a businessman and dealmaker who wants results, and his statement reflects his emphasis on making things possible.
“As for China importing US oil, that would involve a long route. Trump’s economic intent is clear but I am not too sure about how it will happen,” Arif Ansar said.
Follow for more: Twitter (X) | Facebook | Instagram | LinkeIn
