U.S. President Donald Trump signed an order on February 4 to restore his "maximum economic pressure" policy on Iran aimed at hurting its oil exports and slowing its nuclear program.
Ahead of a meeting at the White House with Israeli Prime Minister Benjamin Netanyahu, Trump signed a presidential memorandum reinstating a policy that Trump imposed during his first administration.
Trump's memo orders the U.S. Treasury Department to impose "maximum economic pressure" on Iran through sanctions and enforcement mechanisms on individuals and entities that violate existing sanctions.
It also directs the Treasury and State departments to implement a campaign aimed at "driving Iran's oil exports to zero."
U.S. sanctions on Iran's energy sector have been in place since 2018, when Trump during his first term in office withdrew from the 2015 nuclear deal and reimposed sanctions that had been lifted under its terms. Iranian oil sales plummeted as a result.
But in recent years, a combination of Iran mastering sanctions-evading tactics and Washington's reluctance under the Biden administration to strictly enforce the sanctions led to Iran increasing its exports.
"I would expect tougher U.S. action against countries involved in the movement, or where tankers engage in ship-to-ship transfers of Iranian crude," said Gregory Brew, an Iran and energy analyst at the U.S.-based Eurasia Group.
The rise in Iran's oil sale is in part due to China's appetite for Iranian oil. Tehran offers Beijing a steep discount to take its sanctioned oil, making it worthwhile for China to take on the risk of bypassing U.S. sanctions.
"On paper, China doesn't take any Iranian oil, it's always camouflaged in China's customs data as Malaysian or [Emirati] crude oil," said Brew.
"But China is likely to respond negatively to any sanctions that touch its own banks, refiners, or ports. If the sanctions are limited to tankers or intermediaries, I doubt we'll see much of a reaction from Beijing."
As he signed the memo, Trump described it as very tough but also said he was open to a deal with Iran and expressed a willingness to talk to the Iranian leadership.
"With me, it's very simple: Iran cannot have a nuclear weapon," Trump said. Asked how close Tehran is to a weapon, Trump said, "They're too close."
SEE ALSO: The Farda Briefing: Iran Wants To Negotiate With U.S., But What Will It Concede?Aside from abrogating the nuclear deal, Trump in his first term ordered the killing of one of Iran's top generals in 2020, for which Iran has vowed vengeance.
After signing the memo, Trump commented on Iranian threats against him that were revealed by the Justice Department last year during the U.S. presidential campaign. Trump said there would be a drastic response if he were assassinated.
"I’ve left instructions if they do it, they get obliterated. There won’t be anything left,” he said.
Vice President J.D. Vance would become president if Trump died, and he would not necessarily be bound by any instructions left by Trump.
Later on February 4, during a joint news conference with Netanyahu, Trump said he wanted Iran to be peaceful and successful, praising Iranians as an “unbelievable group of people.”
He said he hated imposing the maximum pressure campaign during his first term in office and “hate to do it just as much now.”
But he reiterated his staunch opposition to Tehran developing a nuclear weapon and said if Iran becomes a nuclear-armed nation, that would be “very unfortunate” for them.
"I say this to Iran, who's listening very intently: I would love to be able to make a great deal. A deal where you can get on with your lives," Trump said at the news conference.
The president said Iran would find it very beneficial if it can convince him that they won’t develop a nuclear weapon, saying if that were the case, “I think they are going to have an unbelievable future.”
Iran's Supreme Leader Ali Khamenei last week appeared to green-light talks with Trump's administration in the hopes of lifting sanctions. Iranian Vice President for Strategic Affairs Mohammad Javad Zarif earlier appealed to Trump to "choose rationality" and resume nuclear negotiations.