President Donald Trump warned on Thursday that any country or person buying oil or petrochemicals from Iran will be cut off from doing any business with the United States.
He posted the threat on Truth Social, writing:
“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.”
This message followed Trump’s February decision to launch what he called a “maximum pressure” campaign aimed at completely halting Iran’s oil exports. At the White House on Thursday, he claimed Iran continues to fund militant groups across the Middle East using oil revenues.
According to data from CNBC, the oil market responded right away as US crude futures went up by $1.03, or 1.77%, closing at $59.24 per barrel. Brent, the global oil benchmark, climbed $1.07, or 1.75%, ending at $62.13. Iran remains a top oil producer within OPEC, so any talk of sanctions instantly affects pricing.
Trump takes aim at China and starts talks with Iran
The White House didn’t directly name China, but Scott Modell, who runs Rapidan Energy and is a former CIA officer, said the message clearly pointed to Beijing. China is reportedly importing over 1 million barrels a day from Iran. Modell told CNBC that unless the administration specifically hits China’s state-owned companies and the infrastructure that supports those oil flows, those barrels will keep moving.
“Trump’s comments don’t signify a change in the administration’s drive to reach a new deal with Iran but rather underscore Trump’s belief in negotiating through strength,” Modell said.
Even with all the pressure, Trump isn’t closing the door on talks. In April, he opened negotiations with Iranian officials in Oman. The focus was Iran’s nuclear program. Back in February, he said the goal was to stop Iran from getting a nuclear weapon, though Tehran denies it wants one. He added that he would rather negotiate a new agreement than keep escalating tensions.
This approach isn’t new. During his first term, Trump pulled the US out of the 2015 nuclear deal brokered by Barack Obama. Since then, his administration has worked to squeeze Iran’s economy, especially its oil exports, as hard as possible.
One more move came earlier in April, when Trump slapped “secondary tariffs” on countries buying oil from Venezuela, another member of OPEC. Just like with Iran, the goal is to block revenue from flowing to governments he wants to isolate.
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