AsianFin -- U.S. President Donald Trump on Tuesday appeared to reverse years of U.S. sanctions policy on Iran, saying China is now free to purchase Iranian oil — a move that caught oil markets and even his own advisers off guard.

“China can now continue to purchase oil from Iran,” Trump wrote on Truth Social, in a series of posts urging an end to hostilities between Israel and Iran.

The unexpected statement came just hours after Trump announced that Israel and Iran had agreed to a ceasefire — though early reports indicated violations by both sides. The ceasefire followed sweeping U.S. airstrikes over the weekend targeting multiple Iranian nuclear sites, in what Trump described as a necessary move to halt Tehran’s progress toward developing a nuclear weapon.

The policy shift, if implemented, would mark a sharp break from Washington’s longstanding effort — under both Democratic and Republican administrations — to cripple Iran’s oil revenue, the regime’s primary source of foreign income. Sanctions enforcement has been a cornerstone of U.S. pressure on Tehran since the U.S. withdrew from the 2015 nuclear deal.

The announcement could have significant geopolitical and economic implications, particularly as China remains Iran’s largest oil customer. Analysts warn that easing restrictions could restore billions in oil revenues to Iran’s government and complicate any broader international effort to renegotiate nuclear constraints.

Oil traders reacted swiftly to the news, with some viewing it as a potential loosening of U.S. resolve on sanctions enforcement. Still, confusion remains over whether the comment reflects an official policy change or an ad hoc political move tied to Trump’s push to stabilize the region.