Under President Donald Trump’s Iran sanctions, this is exactly what the administration has declared—anyone who buys oil or petrochemicals from Iran will be sanctioned immediately. That means they won’t be able to conduct any business with the U.S. This statement, made on Thursday, underscores Trump’s ongoing “maximum pressure” campaign against the Islamic Republic, which aims to completely halt Iran’s oil exports.
Since taking office, Trump has made it a priority to re-negotiate Iran’s nuclear program. At the same time, he has blamed Iran for using its oil money to fund terrorist organizations all over the region. This latest warning is the third call to action, as part of a concerted strategy to isolate Iran economically.
“Any Country or person who buys ANY AMOUNT of OIL or PETROCHEMICALS from Iran will be subject to, immediately, Secondary Sanctions. They will not be allowed to do business with the United States of America in any way, shape, or form.”
In response to Trump’s announcement, U.S. crude oil futures spiked up by $1.11. This net increase of 1.91% raised the price to $59.32 per barrel. Correspondingly, the global benchmark Brent increased by $1.15, or 1.88%, rising to $62.21 per barrel.
The implications of Trump’s statements extend beyond international relations. They signal a tightening grip on Iran’s economy as the administration seeks to enforce stringent measures against its oil trade. By cutting off revenue sources, the U.S. aims to undermine Iran’s ability to finance activities that contribute to regional instability.
An Iranian national flag flies at the Persian Gulf Star Co. gas condensate refinery in Bandar Abbas, Iran, a facility emblematic of the country’s oil industry amidst the backdrop of Trump’s “maximum pressure” campaign. With negotiations over the future of Iran’s nuclear program still ongoing, it is too early to know how these sanctions will impact global oil markets or geopolitical relationships.
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