On Thursday, President Donald Trump announced that any country or individual purchasing oil or petrochemicals from Iran would face secondary sanctions and be barred from conducting business with the U.S.
U.S. crude oil futures rose by $1.03, or 1.77%, closing at $59.24 per barrel, while global benchmark Brent increased by $1.07, or 1.75%, settling at $62.13. Iran is a major oil producer within OPEC. In a post on his social media platform Truth Social, Trump stated, “Any country or person who buys ANY AMOUNT of oil or petrochemicals from Iran will be subject to immediate secondary sanctions. They will not be allowed to do business with the United States in any way, shape, or form.”
Trump has pursued a “maximum pressure” campaign since February, aiming to halt Iran’s oil exports entirely. He also accused Iran of funding militant groups across the Middle East. Additionally, Trump initiated negotiations in Oman in April concerning Iran’s nuclear program, reiterating his goal of preventing Iran from developing nuclear weapons, which Tehran has denied pursuing.
Trump’s remarks are seen as primarily targeting China, which imports over 1 million barrels per day from Iran, according to Scott Modell, CEO of Rapidan Energy. Modell explained that U.S. sanctions are unlikely to affect Iranian oil exports to China unless Washington takes action against Chinese state-owned enterprises and infrastructure. He noted that Trump’s comments align with his strategy of negotiating from a position of strength, rather than signaling a shift in the administration’s approach to reaching a new deal with Iran.
In early April, Trump also imposed “secondary tariffs” on any country importing oil from Venezuela, another OPEC nation.
