Trump’s Iranian Oil Ultimatum Puts $110 Billion China Trade at Risk

President Donald Trump announced on May 1 that he would impose immediate secondary sanctions on any country or entity purchasing Iranian oil or petrochemical products.

The declaration came shortly after planned nuclear talks between the US and Iran were postponed for “logistical reasons.” Trump stated on Truth Social that anyone buying Iranian oil would be barred from doing business with the United States.

The threat primarily affects China, which purchases nearly 90% of Iran’s crude exports. Chinese imports of Iranian crude reached a record 1.8 million barrels per day in March 2025.

This move marks a significant escalation in Trump’s “maximum pressure” campaign against Iran. It also complicates already strained US-China trade relations, where Trump has imposed 145% tariffs on Chinese imports.

The president did not specify implementation details for these secondary sanctions. Iran currently exports approximately 1.6 million barrels per day of crude oil and condensate.

The sanctions threat could potentially stem price slides in the current well-supplied global oil market. This is especially relevant as OPEC+ plans to add more barrels.

The nuclear negotiations, mediated by Oman, seek to limit Iran’s nuclear program in exchange for lifting some US economic sanctions. Both countries maintain they are committed to reaching an agreement.

Iran’s Foreign Minister Abbas Araghchi stated Tehran remains determined to achieve a “just and balanced deal.” The sanctions announcement followed Wednesday’s action against seven entities allegedly involved in Iranian oil trade.

Iranian officials claim these sanctions during negotiations demonstrate “contradictory behavior and lack of good faith” from American decision-makers.

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