President Donald Trump has issued a stern warning that any nation or individual purchasing oil or petrochemicals from Iran will face a complete ban on business dealings with the United States. This move, announced on his social media platform, shows a renewed and intensified effort to isolate Iran’s vital energy sector and cut off one of its last remaining sources of revenue.
“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,” Trump said in a post on his social media platform Truth Social.
Trump’s statement, though not naming specific countries, is widely seen as a direct message to China, which has become the primary destination for Iranian crude oil exports. Recent figures from energy analysts suggest that China now accounts for nearly 90% of Iran’s oil exports, with imports reaching new highs in the past year despite ongoing U.S. sanctions.
The impact of Trump’s announcement was felt immediately in global energy markets, with both U.S. crude and Brent oil prices climbing as traders reacted to the prospect of tighter supply. The shipping sector is also bracing for increased scrutiny, as American authorities have previously targeted not only buyers but also the vessels and companies involved in transporting Iranian oil. Such actions have led to higher shipping costs, the use of more covert shipping methods, and greater risks for those involved in the trade.
Trump’s hardline stance comes at a delicate time for international diplomacy. Earlier this year, efforts were underway to restart nuclear negotiations between the U.S. and Iran, with Oman acting as a mediator. The U.S. administration has made it clear that preventing Iran from developing nuclear weapons remains a top priority, recently imposing fresh sanctions on firms accused of helping Iran finance its nuclear programme and regional proxy groups.
Despite the confrontational tone, Trump has indicated a willingness to negotiate, stating he would prefer a diplomatic resolution if possible. Iran, meanwhile, has consistently denied seeking nuclear weapons and maintains that its nuclear activities are for peaceful purposes.
The effectiveness of these renewed sanctions is uncertain. Previous rounds of U.S. secondary sanctions, particularly between 2012 and 2015, significantly reduced Iran’s oil exports. However, the current situation is more complex. Many of the Chinese refineries importing Iranian oil are smaller, independent operators with limited exposure to the U.S. financial system, potentially making it more difficult for Washington to exert pressure. Even so, Chinese banks remain cautious, often holding Iranian oil revenues in restricted accounts to avoid falling foul of U.S. regulations.
In addition to targeting China, the U.S. has imposed sanctions on intermediaries in countries such as the United Arab Emirates and Turkey, accusing them of facilitating the illicit trade of Iranian petroleum products.
Trump’s approach risks further straining already tense relations between the U.S. and China, which are also embroiled in disputes over trade tariffs and technology. For global markets, the threat of a sharp reduction in Iranian oil supplies could lead to increased volatility, disrupt established supply chains, and force buyers to seek alternative sources, potentially at higher costs.