The United States has imposed additional measures against Iran by sanctioning an international network facilitating the export of millions of barrels of crude oil to China. According to a statement from the Department of State, the action aims to cut off funding for Iran’s military and nuclear activities.
U.S. authorities stated that revenues from these oil exports support the development of ballistic missiles and drones in Iran, while also fuelling nuclear proliferation and terrorist operations. The network is accused of operating on behalf of the Iranian armed forces and its front company, Sepehr Energy.
The sanctions are part of the “maximum pressure” policy reintroduced by the Trump administration since returning to office. The strategy is intended to restrict Iran’s access to financial resources deemed necessary for advancing its defence programmes and its involvement in destabilising activities on a global scale.
The fourth round of negotiations between the United States and Iran, focusing on the nuclear issue, concluded in Muscat (Oman) without a breakthrough. Despite the lack of progress, both sides expressed cautious optimism, noting that further discussions are planned to try to reach a new agreement.
Context of the current situation
Since the unilateral withdrawal of the United States from the Joint Comprehensive Plan of Action (JCPOA) in 2018, tensions between Washington and Tehran have remained high. The Trump administration is seeking a new deal that would prevent Iran from acquiring nuclear weapons, a goal Iran has consistently denied pursuing.
The sanctions also target companies and individuals involved in transporting Iranian oil, a vital sector for the Islamic Republic’s economy. The U.S. government continues to implement coercive measures to prevent Iran’s trading partners from breaching international restrictions.
Implications for the global oil market
The new sanctions could significantly impact crude oil trade between Iran and China. Despite sanctions, Iran remains a strategic supplier for some Asian markets. The effectiveness of U.S. sanctions could also affect trade relations between China and the United States, further straining geopolitical tensions in the region.
Iran’s crude oil exports have declined over the years, but China, its main trading partner, remains a key player in regional energy flows. The intensification of sanctions may prompt a shift in commercial strategies among oil producers in Asia and across global markets.
