Trump has accused former President Joe Biden of failing to rigorously enforce oil-export sanctions, which Trump says emboldened Tehran by allowing it to sell oil to fund a nuclear weapons program and armed militias in the Middle East.
Iran is “dramatically” accelerating enrichment of uranium to up to 60 per cent purity, close to the roughly 90 per cent weapons-grade level, the UN nuclear watchdog chief told Reuters in December. Iran has denied wanting to develop a nuclear weapon.
Trump’s memo, among other things, orders the US Treasury secretary to impose “maximum economic pressure” on Iran, including sanctions and enforcement mechanisms on those violating existing sanctions.
It also directs the Treasury and State Department to implement a campaign aimed at “driving Iran’s oil exports to zero.” US oil prices pared losses on Tuesday on the news that Trump planned to sign the memo, which offset some weakness from the tariff drama between Washington and Beijing.
Tehran’s oil exports brought in $53 billion in 2023 and $54 billion a year earlier, according to US Energy Information Administration estimates. Output during 2024 was running at its highest level since 2018, based on OPEC data.