U.S. President Donald Trump has reactivated his administration’s “maximum pressure” campaign against Iran, with the goal of reducing the Islamic Republic’s oil exports to zero. However, Trump also expressed a willingness to negotiate a new nuclear agreement that would allow Iran to “peacefully grow and prosper” without developing nuclear weapons.
“I would much prefer a Verified Nuclear Peace Agreement, which will let Iran peacefully grow and prosper. We should start working on it immediately,” Trump wrote on the social media platform Truth Social, just one day after reintroducing the aggressive sanctions strategy.
Additionally, Trump addressed reports of potential military action, stating, “Reports that the United States, working in conjunction with Israel, is going to blow Iran into smithereens, ARE GREATLY EXAGGERATED.”
Trump’s stance on Iran dates back to 2018, when he withdrew the U.S. from the Joint Comprehensive Plan of Action (JCPOA)—commonly referred to as the Iran nuclear deal—an agreement negotiated under President Obama. In the wake of the withdrawal, the U.S. imposed renewed sanctions on Iran’s oil industry, slashing its oil exports. Despite these sanctions, Iran continues to export more than 1 million barrels per day (bpd) through covert tanker fleets and obscure oil trading networks.
China has emerged as the primary beneficiary of Iran’s continued oil trade, with most of Tehran’s crude being shipped there since 2018. China’s independent refiners, known as “teapots,” purchase Iranian oil at discounted rates, benefiting from the trade despite international sanctions.
Under Trump’s renewed campaign, the Iran-China oil trade is facing increased pressure. A recent National Security Presidential Memorandum (NSPM) directs the U.S. Secretary of State to modify or eliminate sanctions waivers, including those providing relief to Iran’s Chabahar port project. The memorandum also outlines efforts to reduce Iran’s oil exports to zero, particularly targeting shipments to China.
In response, Iran’s Oil Minister Mohsen Paknejad criticized the U.S. sanctions, stating they are destabilizing the global oil market and harming consumers worldwide.
Two days after reinstating the “maximum pressure” campaign, the U.S. Treasury Department imposed sanctions on an international network responsible for facilitating the shipment of Iranian oil to China. The sanctioned network reportedly moved millions of barrels of Iranian crude, valued at hundreds of millions of dollars, through entities linked to Iran’s Armed Forces General Staff (AFGS) and its front company, Sepehr Energy Jahan Nama Pars (Sepehr Energy). The Treasury Department also designated individuals and entities in China, India, the United Arab Emirates, and other jurisdictions.
“The Iranian regime remains focused on leveraging its oil revenues to fund the development of its nuclear program, ballistic missiles, and regional proxy groups,” said Treasury Secretary Scott Bessent. “The United States is committed to aggressively targeting any attempt by Iran to secure funding for these malign activities.”
Despite the Trump administration’s intensified sanctions on Iranian oil exports, global oil prices have dipped in recent days. Experts attribute this trend to the potential economic impact of ongoing tariff threats and concerns over global economic growth.