WPB: The Trump Administration is gearing up to enforce U.S. sanctions on Iran’s oil sector with greater rigor, U.S. Secretary of Energy Chris Wright stated in an interview with Bloomberg during the CERAWeek conference organized by S&P Global.
Over the past few months, U.S. measures against Iranian oil exports have become increasingly stringent. While the Biden Administration took steps to tighten these sanctions toward the end of 2024, the Trump Administration has already implemented two additional rounds of restrictions. These new measures specifically target the clandestine fleet that facilitates the shipment of Iranian crude to China.
Secretary Wright pointed out that under Biden’s leadership, these sanctions were not strictly upheld. As a result, Iran managed to ramp up its oil exports, reaching the highest level in six years by mid-2024. However, the current administration intends to leave no room for leniency. Last month, President Donald Trump instructed the Secretary of State to launch a “strong and ongoing initiative,” working in tandem with the Treasury Department and other government agencies, to completely halt Iran’s oil exports—including crude shipments to China.
This renewed focus on curbing Iran’s oil trade aligns with the U.S. government’s broader “maximum pressure” strategy. Wright recalled that Iranian exports were significantly lower during Trump’s previous term in office.
“Biden did not revoke the sanctions, but he effectively suspended their enforcement,” Wright remarked in his Bloomberg interview at the Houston conference. “That decision allowed Iran to accumulate wealth. And now, we see the consequences—chaos caused by groups like the Houthis, Hezbollah, and Hamas. Is President Trump committed to restoring order and promoting global stability? Absolutely. Can we afford to cut off Iranian oil exports? Without a doubt.”
Despite these efforts, analysts tracking global oil shipments report that as of late February, Iranian crude continues to flow to China—its largest buyer, accounting for approximately 90% of its exports. Traders and intermediaries have been adapting by rerouting tankers and increasing ship-to-ship transfers, particularly in offshore areas near Malaysia.
By WPB
Oil, Bitumen, Shipping
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