The Trump Administration is set to enforce stricter U.S. sanctions on Iran’s oil industry and exports, U.S. Secretary of Energy Chris Wright told Bloomberg at the CERAWeek by S&P Global conference.
Recently, the U.S. has ramped up sanctions targeting Iranian oil exports. While the Biden Administration took action at the end of 2024, the Trump Administration had already imposed two rounds of new sanctions, primarily targeting the shadow fleet that supports Iranian oil exports to China.
Secretary Wright claimed that the Biden Administration had not strictly enforced these sanctions. This lapse allowed Iran to increase its oil exports to a six-year high by mid-2024.
The Trump Administration, however, has made it clear it will not offer Iran any flexibility. Last month, President Donald Trump directed the Secretary of State to lead a coordinated effort with the Treasury Department and other agencies to bring Iranian oil exports to zero, including those to China.
This move is part of the broader “maximum pressure” campaign, aimed at limiting Iran’s oil exports and pressuring the nation’s economy. Under Trump’s leadership, Iran’s oil exports were at very low levels, Wright said during the Houston conference.
“Biden didn’t remove those sanctions, but he stopped enforcing them,” Wright explained. “This allowed Iran to profit, and we’ve seen the impact with groups like the Houthis, Hezbollah, and Hamas. The situation has spiraled. Is President Trump looking to end this chaos and restore peace? Absolutely. Can we afford to cut off Iranian oil exports? Absolutely.”
As of February, Iranian exports to China—its largest customer—continue, as traders and middlemen adjust tanker routes and increase ship-to-ship transfers, particularly off the coast of Malaysia, according to vessel-tracking analysts.
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