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Trump May Lift Sanctions on Chinese Firms Buying Iranian Crude

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US President Donald Trump said Friday that he discussed lifting sanctions on Chinese companies purchasing Iranian oil with Chinese President Xi Jinping.

Trump made the remarks on Friday aboard Air Force One after meeting President Xi during a two-day diplomatic visit to China.

"... I'm going to make a decision over the next few days," Trump said about potentially lifting sanctions.

The US recently sanctioned several Chinese refiners tied to Iran's oil trade as Washington expanded economic pressure on Tehran, while China has remained the largest buyer of Iranian crude shipments.

China wants the Strait of Hormuz reopened as energy flows through the route remain heavily disrupted following recent tensions with Iran. "He'd like to see it opened up," Trump said.

China gets about 40% of its energy and oil through the Strait of Hormuz, Trump said, while discussing Beijing's dependence on the passage.

On Iran, Trump said, "Iran will never have a nuclear weapon. Not going to happen," while rejecting Tehran's latest proposal over nuclear restrictions.

"They agreed to it, but then they took it back, but they'll agree to it eventually," Trump said about Iran's earlier willingness to remove nuclear material before reversing its position.

Trump added that President Xi strongly opposed Iran obtaining nuclear weapons during bilateral discussions on Friday, saying, "He feels strongly they can't have a nuclear weapon."

Trump said the US-imposed blockade of the Strait of Hormuz has cost Iran roughly $500 million per day in lost oil-related revenue.

"We control the strait, and they've [Iran] done no business... in the last two and a half weeks, which is approximately $500 million a day," Trump said.

The US imposed the blockade around the Strait of Hormuz on April 13 after peace talks with Iran collapsed, escalating military operations aimed at restricting Tehran's oil exports and shipping access.

The ceasefire followed requests from other nations, although the US blockade remained effective and sharply restricted Iranian commercial activity in the region, Trump added.

"We could knock out their bridges and their electrical capacity within two days," Trump said while warning the US could quickly target Iran's remaining infrastructure if military operations resume.

"He's got one of the greatest oil finds anywhere in the world, and he's not using it," Trump said while urging UK Prime Minister Keir Starmer to expand North Sea drilling.

"He doesn't want to see a movement for independence," Trump said about Xi's Taiwan position, adding he would decide later on future US arms sales to Taiwan.

Oil prices jumped on Friday following Trump's diplomatic visit to China, with Murban up 2.6% at $107.44 per barrel, Brent crude rising 3.3% to $109.23/bbl, and West Texas Intermediate gaining 3.9% to $105.07/bbl.

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