US ramps up pressure on Iranian oil with new sanctions on exports

Donald Trump has signed an order attempting to push Tehran’s exports to ‘zero’

The US says Iran is focused on using oil revenues to fund its nuclear programme. Reuters

The US on Thursday unveiled sanctions against people and companies accused of helping to ship Iranian oil to China, the latest measure focused on Tehran's oil sector, as President Donald Trump ratchets up his “maximum pressure” campaign.

Mr Trump this week signed a memorandum ordering the US Treasury Secretary to hit Iran with sanctions and enforcement measures on those breaching existing penalties. But he has also appeared conciliatory towards Iran, saying he wants a “verified nuclear peace agreement” and for the country to be “great and successful”.

Thursday's action takes aim at a network of more than a dozen people and firms that are accused of enabling the shipment of millions of barrels of Iranian oil to China. The targets include Iranian and Indian citizens, crew management firms and a collection of ships.

“The Iranian regime remains focused on leveraging its oil revenues to fund the development of its nuclear programme, to produce its deadly ballistic missiles and unmanned aerial vehicles, and to support its regional terrorist proxy groups,” Treasury Secretary Scott Bessent said.

During his confirmation hearing, Mr Bessent criticised the sanctions policies of former president Joe Biden's administration and called for the US to have a more “muscular” sanctions regime against Iran as well as Russian entities and oil.

State Department spokeswoman Tammy Bruce said in a statement that the US “will use all tools at our disposal to hold the regime accountable for its destabilising activities and pursuit of nuclear weapons that threaten the civilised world”.

The memo Mr Trump signed this week states, among other things, that Iran should be denied a nuclear weapon and intercontinental ballistic missiles, and that the Treasury campaign should aim to bring “Iran’s oil exports to zero”.

US President Donald Trump posted this message on Truth Social on February 5, 2025. Photo: Screengrab

But Mr Trump also indicated that he was open to a different relationship with Tehran and that he was “torn” about signing the memo.

“Iran cannot have a nuclear weapon,” Mr Trump said. “We don't want to be tough on Iran. We don't want to be tough on anybody, but they just can't have a nuclear weapon.”

He said he had hoped not to sign the memo.

“Hopefully, we're not going to have to use it very much,” Mr Trump said. “We will see whether or not we can arrange or work out a deal with Iran and everybody can live together, and maybe that's possible and maybe it's not possible.”

Meanwhile, Mr Trump's moves to freeze spending on foreign aid and overhaul – maybe even end – the US Agency for International Development have been lauded in Iranian state media. The reports say the decisions will halt funding for the country's opponents – activists and others supported through programmes as part of the US government's efforts to help foster democracy worldwide.

Also on Thursday, a bipartisan group of US lawmakers announced they were introducing a bill taking aim at what they said were Iran's nuclear weapons ambitions.

“A nuclear-armed Iran is a threat to Israel and the world. We must keep all options on the table to address this crisis,” congressman Mike Lawler said.

Khamenei warns of retaliation if US takes action against Iran

Khamenei warns of retaliation if US takes action against Iran

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