Krishnamoorthi Presses Trump Administration on Apparent Retreat from Sanctions on Iranian Oil Sales to China

WASHINGTON, D.C. – Today, Ranking Member Raja Krishnamoorthi (D-IL) of the House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party sent a letter to Treasury Secretary Scott Bessent and Secretary of State Marco Rubio raising urgent concerns about reports that the Trump Administration may be undermining U.S. sanctions policy on Iranian petroleum exports with regard to the People’s Republic of China (PRC).

“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,” Ranking Member Krishnamoorthi wrote. “Sanctions on illegal activity that threaten the national security of the United States should not be compromised or traded away for leverage.”

The letter notes that a June 24, 2025 post by President Trump stating that “China can now continue to purchase Oil from Iran” appears to directly contradict his own administration’s National Security Presidential Memorandum (NSPM)-2, which requires U.S. agencies to “drive Iran’s export of oil to zero, including exports of Iranian crude to the People’s Republic of China,” as well as several executive orders.

“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,” Ranking Member Krishnamoorthi continued.

The Ranking Member’s letter highlighted that Iran’s petroleum sales generated $53 billion in 2023 and $54 billion in 2024 for the country, with more than 90 percent of those sales made to the PRC, often through covert methods designed to evade U.S. sanctions.

“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,” the Ranking Member warned.

Ranking Member Krishnamoorthi called on the Departments of Treasury and State to clarify whether President Trump’s remarks signal a formal change in U.S. policy and to respond to specific questions by August 28, 2025, regarding any concessions, waivers, or changes to sanctions enforcement on Iranian oil sales to the PRC.

The full text of the letter is available here.

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