Trump administration imposes first Iran sanctions since taking office

The United States has imposed its first sanctions on Iran since Donald Trump's return to the White House, as the president works to reimpose "maximum pressure" on Tehran. The U.S. Treasury Department announced the sanctions on Thursday, saying they target Iran's "oil network." These measures are designed to curb Iran's financial resources and limit its ability to fund destabilizing activities.

The measures target companies, vessels, and individuals linked to firms already sanctioned by the U.S. Such punitive actions were frequently employed by the U.S. during former President Joe Biden's administration to enforce existing sanctions. "The Iranian regime remains focused on using its petroleum revenue to fund the development of its nuclear program, produce its deadly ballistic missiles and drones, and support its regional terrorist proxy groups," Treasury Secretary Scott Besent said in a statement. This reflects the U.S. government's ongoing concerns about Iran's actions.

"The United States is committed to actively combating any attempt by Iran to obtain funds for these malicious activities." Iran has long rejected sanctions targeting its oil sector and the confiscation of its exports, calling them "piracy." The Treasury Department said the sanctions include "entities and individuals across multiple jurisdictions," including China, India, and the United Arab Emirates. These sanctions aim to disrupt Iran's oil trade with various countries.

Thursday's action comes two days after Trump signed an executive order to revive his pressure campaign against Iran. Trump initiated this campaign after withdrawing from the international agreement with Tehran during his first term. The multilateral agreement, formally known as the Joint Comprehensive Plan of Action (JCPOA), was reached in 2015. It was supposed to see Iran scale back its nuclear program in exchange for the lifting of international sanctions on the Iranian economy.

Biden sought to revive the agreement, but multiple rounds of indirect negotiations with Iran failed to achieve his goal. Diplomatic efforts were further frustrated by the outbreak of war in the Gaza Strip in October 2023. The former administration ultimately maintained sanctions on Iran and imposed additional penalties on Tehran. However, Republicans have accused Biden of failing to strictly enforce sanctions and prevent Iranian oil sales, particularly to China.

Trump's executive order this week directed U.S. officials to review and strengthen sanctions to "bring Iran's oil exports to zero." Thursday's action by the Treasury Department is seen as a response to that demand. Despite renewing the pressure campaign, Trump has left the door open to diplomacy with Tehran, saying he is willing to engage with Iranian officials. "I want Iran to be a great and successful nation, but one that cannot have nuclear weapons," the U.S. president told reporters on Tuesday.

Iranian leaders deny seeking nuclear weapons, but Tehran has for years been increasing its enrichment of uranium, the key material needed to produce a bomb, in response to U.S. sanctions. Israel, a key U.S. ally in the Middle East, is widely believed to possess an undeclared nuclear arsenal. On Thursday, the State Department welcomed the U.S. penalties, saying Washington will not tolerate "disruptive and destabilizing behavior." The US continues to monitor Iran's nuclear activities closely.

In a statement, it described Tehran's oil exports as "illegal." But Iran – a sovereign nation – is selling its own oil. "The proceeds from these sales support terrorism and proxy groups," the State Department said. Tehran has been outspoken in its opposition to Trump's plan to forcibly displace Palestinians from the Gaza Strip, a move that legal experts say amounts to ethnic cleansing. This further intensifies the tensions between the US and Iran.