Trump's Oil Diplomacy: A New Chapter in U.S.-China-Iran Relations

In a significant geopolitical move, U.S. President Donald Trump announced that China could continue its purchase of Iranian oil after a ceasefire agreement between Israel and Iran. However, this decision, shared on Truth Social, does not signify a relaxation in U.S. sanctions, according to a White House statement.

The development comes amidst concerns over the Strait of Hormuz's potential closure, a vital corridor for global oil shipments, which Iran has so far left undisturbed. The White House is urging China to focus on importing American oil rather than Iranian, aligning with Trump's strategy of applying economic pressure on Tehran.

Market impact was immediate as oil prices dropped nearly 6%. The apparent easing of enforcement could mark a shift in U.S. policy, contradicting Trump's earlier stance of exerting 'maximum pressure' on Iran by targeting its oil exports to zero.

(With inputs from agencies.)