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Rep Krishnamoorthi slams Trump’s green light for China to buy Iranian oil

He argued that Trump’s position contradicts the administration’s own National Security Presidential Memorandum-2, which orders agencies to “drive Iran’s export of oil to zero, including exports of Iranian crude to the People’s Republic of China.”

Congressman Raja Krishnamoorthi / REUTERS/Evelyn Hockstein

Indian American Congressman Raja Krishnamoorthi has accused the Trump administration of undercutting U.S. sanctions after President Trump declared on June 24 that “China can now continue to purchase Oil from Iran.”

The statement defies U.S. law and “endangers the national security of the United States,” he said in a letter to Treasury Secretary Scott Bessent and Secretary of State Marco Rubio.

“I am deeply concerned about reports that this Administration may be willing to consider trading away legally-binding sanctions on Iranian oil purchases in the course of trade negotiations with the People’s Republic of China. Sanctions on illegal activity that threaten the national security of the United States should not be compromised or traded away for leverage,” Krishnamoorthi wrote.

He argued that Trump’s post contradicts the administration’s own National Security Presidential Memorandum-2, which orders agencies to “drive Iran’s export of oil to zero, including exports of Iranian crude to the People’s Republic of China.”

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Krishnamoorthi warned: “President Trump’s statement not only contradicts the policies of his own administration but also endangers the national security of the United States by channeling resources to a dangerous regime, enabling the PRC to thrive on cheap energy, and establishing a precedent that U.S. sanctions may be openly violated without repercussion.”

Pointing to the scale of the issue, he noted: “Iran’s sales of its petroleum products have generated revenues of $53 billion in 2023 and $54 billion in 2024 for the country, with more than 90 percent of these sales going to the PRC at a submarket rate. Most PRC buyers are small, semi-independent refineries known as ‘teapots’ … PRC traders have used deceptive techniques including relabeling Iranian-origin petroleum, broadcasting fake tanker route information, falsified manifests, reflagged vessels, and employing ‘dark’ or ‘shadow fleets’ of older ships that are difficult to track.’”

He added that “the erosion of sanctions credibility disproportionately empowers the PRC, which has capitalized on diminished enforcement to deepen its economic ties with Iran at favorable, discounted rates. In effect, any public ambiguity from the United States regarding sanctions enforcement gives Beijing a freer hand to dictate terms in the Persian Gulf, assert energy dominance, and insulate its companies from multilateral pressure, all while sustaining Iran’s capacity to destabilize the Middle East and other nations.”

In his letter, Krishnamoorthi demanded answers from both departments by August 28 on whether Trump’s remarks reflect a formal change in policy, and whether waivers or concessions have been offered.

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