Any country that buys oil from Iran may land in trouble; here's why

US president Donald Trump has put out a strong message to the world, saying, that any country or person that buys oil or petrochemicals from Iran will suffer severe repercussions, which include not being allowed to do any business with the United States, as per a report.

Donald Trump’s Message

Trump wrote on his social media site Truth Social, “Any Country or person who buys ANY AMOUNT of OIL or PETROCHEMICALS from Iran will be subject to, immediately, Secondary Sanctions,” quoted CNBC. He added, “They will not be allowed to do business with the United States of America in any way, shape, or form,” as per the report.

Why This Move?

This is the latest step in Trump's new "maximum pressure" campaign, begun in February, to shut off Iran's oil exports altogether, according to CNBC. The president contends that Iran is supporting militant groups throughout the Middle East, as per the report.

Trump had also started talks with Iran in Oman in April, targeting the nation's nuclear program, as per CNBC.In February, the US president said he wanted to prevent Iran from developing a nuclear bomb, while Tehran has denied it is seeking such a weapon, reported CNBC.

Will It Work?

While, CEO of consulting firm Rapidan Energy, Scott Modell pointed out that, Trump's remarks are directed at China, as it imports over 1 million barrels per day from Iran, as per the report. The CEO also highlighted that the United States sanctions are unlikely to have an impact on Iranian oil flowing to China unless the White House targets Beijing’s state-owned enterprises and infrastructure, reported CNBC.

Modell said, "The president’s statements don’t signify a change in the administration’s drive to reach a new deal with Iran but rather underscore Trump’s belief in negotiating through strength,” as quoted in the report.

FAQs

Why is Trump targeting Iran’s oil exports?
Trump aims to completely shut down Iran's oil exports as he is accusing Iran of financing militant groups in the Middle East, as per CNBC.

How is China involved in this situation?
China imports over 1 million barrels of oil daily from Iran, which is a key reason for Trump’s warnings about sanctions, as per an expert.