Bloomberg: Trump's Team is Considering Oil Sanctions Against the Iranian Government

On Thursday, January 17, Bloomberg reported, citing 'informed sources', that advisors to Donald Trump, the elected President of the United States, are examining political options regarding the Islamic Republic of Iran and Venezuela. These informed sources, who requested anonymity, told Bloomberg that there is a general consensus among Mr. Trump's advisors to return to a strategy of 'full maximum pressure' targeting the Iranian regime, which will include a large sanctions package against key players in the oil industry that may begin in early February. Mr. Trump followed a similar approach during his first term, which significantly reduced Iran's oil exports. Data from the American NGO 'United Against Nuclear Iran' for the year 2024 shows that Iran exported 587 million barrels of oil, a 10.75% increase compared to 530 million barrels in the previous year. The report states that over four years, since the start of Joe Biden's administration, Iran has exported nearly 1.98 billion barrels of oil. The organization also announced that for the sixth consecutive year since the launch of the Iranian oil export tracking system, China, with 533 million barrels received (a 24% increase from 431 million barrels in 2023), was the largest importer of Iranian oil. Bloomberg's report on Trump's team's strategy noted that the advisors to the elected President of the United States are also designing a broad sanctions program aimed at achieving a diplomatic agreement between Russia and Ukraine. The Biden administration imposed the toughest sanctions on Russian oil trade in the final days of its term. According to Bloomberg's report, Trump's team is considering two main approaches; the first is that if the Trump administration seeks a solution to end the Ukraine war, it may take actions favorable to sanctioned Russian oil producers that could help facilitate a peace agreement. The second option is based on sanctions and would increase pressures even more than now. Trump's chosen approach will have a significant impact on the global oil market. Since the announcement of the Biden administration's heavy sanctions, Brent oil prices have increased by nearly $5 per barrel. Informed sources told Bloomberg that Trump's team's plans are in the early stages and ultimately depend on his personal decision. The elected President of the United States stated last week that he is planning a meeting with Vladimir Putin, the President of Russia, which strengthens the possibility of potential negotiations to end the war. Marco Rubio, Trump's nominee for Secretary of State, emphasized the imposition of sanctions as an important lever that could lead to a peaceful solution during his confirmation hearing on Wednesday, January 25. Rubio stated: 'The killing of Soleimani was a sign of America's power during Trump's presidency.' The emphasis of Trump's nominee for Secretary of Defense was on deterrence and preventing war. The Russian oil and gas industries have been targeted by the 'widest' U.S. sanctions. The Islamic Republic's efforts to reclaim 25 million barrels of oil from Chinese ports and the ban on the entry of U.S.-sanctioned oil tankers into ports in Shandong Province, China were also noted.