President Donald Trump loudly threatened new sanctions on Iranian oil purchasers on Thursday, a move that would effectively target China as the world’s foremost importer of Iranian oil.
Trump announced Thursday that Iranian oil buyers will be subject to secondary sanctions and will be prevented from doing business with the U.S., escalating tensions with China amid a broader trade war.
“All purchases of Iranian Oil, or Petrochemical products, must stop, NOW! Any Country or person who buys ANY AMOUNT of OIL or PETROCHEMICALS from Iran will be subject to, immediately, Secondary Sanctions. They will not be allowed to do business with the United States of America in any way, shape, or form,” Trump posted on Truth Social.
China is widely considered to be Iran’s largest oil importer, although official statistics are difficult to come by because China’s government statistics are unreliable, and China deploys methods for evading the Western financial system with its purchases. Shipping data from cargo tracking company Vortexa shows that 90 percent of Iranian oil exports are purchased by China, and Iranian oil exports to China hit a record high of 1.8 million barrels per day in March, Reuters reported, citing ship tracking data.
The State Department and Treasury Department sanctioned Chinese entities in March for their involvement in purchasing Iranian oil. The sanctions were part of Trump’s broader “maximum pressure” campaign against the Iranian economy in a continuation of the Iran policy of his first term.
“These sanctions are being imposed pursuant to President Trump’s maximum pressure campaign to drive Iran’s oil exports, including to China, to zero. China is by far the largest importer of Iranian oil. The Iranian regime uses the revenue it generates from these sales to finance attacks on U.S. allies, support terrorism around the world, and pursue other destabilizing actions,” State Department spokeswoman Tammy Bruce said.
The sanctions followed Trump’s February directive to Secretary of State Marco Rubio to work with Treasury and other agencies to “drive Iran’s export of oil to zero, including exports of Iranian crude to the People’s Republic of China.”
Trump has ratcheted up U.S. tariffs on China to 145 percent following tit-for-tat increases on both sides last month. He cumulatively upped China tariffs 125 percentage points in April after imposing 20 percent tariffs on Chinese imports earlier this year with the goal of stopping fentanyl inflows.
Meanwhile, the Trump administration’s talks with Iran about a potential nuclear deal have been postponed amid tensions between the U.S. and Iran. Trump dispatched Middle East envoy Steve Witkoff to lead the Iran talks to prevent Tehran from developing nuclear capabilities.
The fourth round of indirect talks was scheduled for this weekend in Rome, but the negotiations have been delayed until all sides can agree on future dates, Oman’s foreign minister said Thursday. Oman has been brokering the indirect talks.
“For logistical reasons we are rescheduling the US Iran meeting provisionally planned for Saturday May 3rd. New dates will be announced when mutually agreed,” Omani foreign minister Badr Albusaidi posted on X.
The State Department said Thursday the fourth round in Rome was “never confirmed,” but the U.S. expects to participate in another round soon.