President Donald Trump said Friday he is considering lifting U.S. sanctions on Chinese companies and refineries that purchase oil from Iran.
The potential policy shift suggests a possible thawing of tensions between the two superpowers regarding energy trade and the containment of Iranian oil exports.
Trump said he discussed the matter with Chinese President Xi Jinping to evaluate the benefits of easing the restrictions. "I am weighing whether to lift sanctions on Chinese companies that buy Iranian oil," Trump said [1].
This consideration follows a period of intensified pressure. In April 2026, the United States imposed restrictions on several Chinese companies for sourcing Iranian oil [2]. The pressure increased further recently, as four Hong Kong-based operations were added to the ban less than a week ago [2].
Xi Jinping expressed a positive reception to the diplomatic outreach. "We appreciate the United States' willingness to discuss sanctions," Xi said [3].
The move comes as the U.S. administration evaluates the effectiveness of its current sanctions regime against Iran's economy. Trump said, "We will make a decision soon" [4].
While the specific terms of any potential agreement remain undisclosed, the dialogue marks a significant pivot from the strict enforcement seen earlier this month. The affected refineries and companies have faced significant operational hurdles due to the U.S. ban on Iranian petroleum products.
“"I am weighing whether to lift sanctions on Chinese companies that buy Iranian oil."”
This potential reversal indicates that the U.S. may be using sanctions as a bargaining chip in broader diplomatic or economic negotiations with China. By signaling a willingness to overlook Iranian oil purchases, the Trump administration could be seeking concessions from Beijing on other fronts, such as trade or security, while acknowledging the difficulty of fully blocking the flow of Iranian oil into the global market via Chinese intermediaries.
