US President Donald Trump has escalated economic pressure on Iran by threatening immediate secondary sanctions against any country or individual purchasing Iranian oil or petrochemical products.

In a Truth Social post on May 1, 2025, Trump declared that violators "will not be allowed to do business with the United States of America in any way, shape, or form," signalling a revival of his "maximum pressure" strategy to cripple Tehran’s revenue streams.

This coincides with stalled nuclear negotiations between the U.S. and Iran, originally scheduled for early May but postponed due to unresolved logistical and diplomatic issues.

The sanctions threat specifically targets China, Iran’s largest oil customer, which imported a record 1.8 million barrels per day of Iranian crude in March 2025. While Trump did not explicitly name China in his statement, experts emphasise that effective enforcement would require penalising Chinese financial institutions facilitating these transactions.

The U.S. recently sanctioned Shandong Shengxing Chemical, a Chinese refinery, for purchasing over $1 billion worth of Iranian crude, alongside companies and vessels involved in Iran’s "shadow fleet" oil shipments. These measures align with Trump’s February 2024 memorandum reinstating aggressive sanctions to reduce Iran’s oil exports to zero.

Secondary sanctions, which leverage U.S. economic influence to deter third-party trade with sanctioned entities, pose significant risks to global markets. Analysts note that curtailing Iran’s exports could tighten oil supply, counteracting current market surpluses and OPEC+ production increases. However, the practicality of enforcing a total ban remains uncertain, particularly given China’s reliance on Iranian oil and ongoing U.S.-China trade tensions, including Trump’s 145% tariffs on Chinese goods.

The Trump administration has prioritised halting Iran’s nuclear program through a combination of sanctions and diplomacy, with envoy Stevekoff and senior official Michael Anton leading negotiations. Trump has hinted at military intervention if talks fail, though his preference remains a negotiated agreement. The postponed nuclear discussions, mediated by Oman, aim to exchange sanctions relief for restrictions on Iran’s nuclear activities, though mutual distrust persists.

Trump’s latest sanctions threat intensifies economic coercion against Iran while exacerbating geopolitical friction with China. The success of this strategy hinges on stringent enforcement and international compliance, factors complicated by existing trade disputes and Iran’s resilience in evading sanctions through alternative networks.

ANI