United States: In a decisive declaration, President Donald Trump announced Thursday that any entity—be it sovereign or individual—engaging in commerce involving oil or petrochemical products with Iran will be instantly blacklisted from US economic dealings.
This stern proclamation coincided with a surge in energy markets. US crude oil contracts climbed by USD 1.03, translating to a 1.77 percent increase, settling at USD 59.24 per barrel. Meanwhile, Brent, the global oil benchmark, ascended USD 1.07 or 1.75 percent, ending at USD 62.13. These ripples emerged as Iran—an influential pillar within the OPEC consortium—remains entangled in rising global scrutiny.
“Any Country or person who buys ANY AMOUNT of OIL or PETROCHEMICALS from Iran will be subject to, immediately, Secondary Sanctions,” Trump broadcasted through a post on Truth Social. “They will not be allowed to do business with the United States of America in any way, shape, or form,” according to CNBC News.
This stance is rooted in Trump’s larger blueprint dubbed the “maximum pressure” doctrine—an initiative designed to completely neutralize Tehran’s petroleum-based revenue streams, which, according to the White House, are allegedly funneled into the coffers of militant outfits sowing discord throughout the Middle East.
Even as diplomatic feelers were extended last month to revisit Iran’s nuclear agenda, Trump’s administration maintains a hawkish stance, suspecting clandestine ambitions to forge nuclear weaponry—an assertion Tehran has persistently denied. Still, the president has often vocalized his preference for dialogue and reconciliation, albeit under rigid conditions. Notably, Trump had previously dismantled the 2015 nuclear pact penned by former President Barack Obama, signaling a sharp pivot in US foreign policy.
Scott Modell, the chief executive of Rapidan Energy and former CIA operative, contends that Trump’s salvo is largely targeted at Beijing, which has reportedly been drawing over a million barrels daily from Iranian reserves. However, Modell suggests that unless Washington zeroes in on China’s mammoth state-backed corporations and logistical backbone, the embargo may lack teeth, as reported by CNBC News.
“These pronouncements don’t indicate a detour from the White House’s pursuit of a renewed pact with Iran,” Modell remarked to CNBC. “Instead, they spotlight Trump’s conviction in flexing hard-line leverage during negotiations.”
The sanctions strategy wasn’t limited to Iran. Just weeks prior, Trump slapped so-called “secondary tariffs” on global actors dealing in crude with Venezuela, another heavyweight in the OPEC echelon.