President Trump has re-established a “maximum pressure” campaign against Iran, aiming to reduce its oil exports to prevent nuclear weapon development. Despite expressing a willingness to negotiate, Trump emphasizes that Iran must not obtain nuclear capabilities. The campaign involves stringent economic sanctions and international collaboration to reinstate previous sanctions under the 2015 nuclear agreement. Consequently, the geopolitical and economic landscape surrounding Iran remains highly contested and intricate.
On Tuesday, President Donald Trump reinstated his “maximum pressure” campaign against Iran, aimed at completely halting its oil exports to prevent Tehran from obtaining nuclear weapon capabilities. This action precedes his meeting with Israeli Prime Minister Benjamin Netanyahu, during which Trump signed a memorandum reaffirming the stringent policies enacted during his first term.
While signing the memorandum, Trump characterized it as a rigorous measure, expressing internal conflict regarding the decision but stating his openness to negotiating with Iran. He reiterated, “Iran cannot have a nuclear weapon” and claimed, “They’re too close” to achieving this capability, although Iran has consistently denied intentions to develop nuclear arms.
The memorandum instructs the U.S. Treasury Secretary to impose maximum economic pressure, including sanctions against violators. It also mandates a campaign to drive Iran’s oil exports to zero. Responses from U.S. oil markets reflected a reduction in loss due to the announcement of this memorandum.
In 2023, Iran’s oil exports generated approximately $53 billion, with output at its highest level since 2018. While previous sanctions nearly eliminated Iranian oil exports during Trump’s first term, Biden’s administration saw a rise due to Iran’s efforts to bypass sanctions.
Key players in OPEC, including Saudi Arabia and the UAE, are expected to compensate for any decrease in Iranian oil exports. Notably, China has actively continued purchasing Iranian oil despite U.S. sanctions, facilitating trade with Iran primarily through the use of the Chinese yuan, bypassing U.S. dollar transactions and regulation risks.
Analyst Kevin Book indicated the potential application of the 2024 Stop Harboring Iranian Petroleum (SHIP) law, which addresses foreign entities that process Iranian oil, a measure not strictly enforced by the current administration. Recent developments signal possible impacts of this law on international trade with Iran.
Trump has also directed his U.N. ambassador to collaborate with allies to reinstate international sanctions on Iran per the 2015 agreement, which initially lifted sanctions in exchange for nuclear program limitations. The expiration of the resolution enabling these sanctions on October 18 will limit Western allies’ capability to act.
Iran’s ambassador to the U.N. argued that any resurgence of sanctions would be “unlawful and counterproductive.” In the past months, European and Iranian diplomats have engaged in discussions regarding avenues to mitigate regional tensions, particularly about Iran’s nuclear ambitions, prior to Trump’s administration advancing changes.
The article discusses U.S. President Donald Trump’s renewed efforts to impose stringent sanctions on Iran following his previous term’s policy. The objectives of these sanctions focus on eliminating Iran’s oil exports, a strategic maneuver to hinder the country from acquiring nuclear capabilities. The situational backdrop involves heightened tensions between the U.S. and Iran, with implications for global oil markets and international diplomacy regarding nuclear negotiations.
In summary, President Trump’s reinstatement of “maximum pressure” on Iran seeks to eliminate the nation’s oil exports as a means of preventing nuclear armament. The U.S. administration aims to enforce severe sanctions while addressing the geopolitical dynamics involving allies and adversaries. Trump’s actions will directly influence Iran’s economy and global oil markets, amidst ongoing discussions about regional tension reduction and nuclear negotiation efforts.
Original Source: www.voanews.com
