Overview

• President Trump announced on Truth Social that China may continue purchasing oil from Iran, marking a pivot from his recent demand that all Iranian oil imports stop.
• The announcement came hours after Trump brokered a US-mediated ceasefire between Iran and Israel following nearly two weeks of conflict.
• Global oil benchmarks opened lower after the post, with Brent and West Texas Intermediate prices falling close to 5%.
• The administration has not specified whether existing secondary sanctions on Chinese refineries and tanker operators will be lifted or enforced.
• China accounts for over 90% of Iran’s oil exports, and analysts say Washington may be seeking to swap Iranian barrels for increased US energy sales.