Trump Reinstates Maximum Pressure Campaign on Iran, Aims to Halt Nuclear Weapon Development

On Tuesday, U.S. President Donald Trump announced the reinstatement of his "maximum pressure" campaign against Iran, an aggressive strategy aimed at curbing Tehran's nuclear ambitions and halting its oil exports. The move, made official through a presidential memorandum, comes ahead of a meeting with Israeli Prime Minister Benjamin Netanyahu and marks a return to the tough policies that defined Trump’s first term in office.

Trump emphasized the importance of preventing Iran from obtaining a nuclear weapon, stating that he hopes a deal can be reached with Tehran, but also warning that any retaliation by Iran would result in the country’s "obliteration." The President is also willing to meet with Iranian leaders to discuss nuclear disarmament and the future of the region, but he made it clear that the U.S. will take firm action to stop Iran's nuclear weapon development.

The memorandum directs U.S. Treasury and State Departments to re-impose stringent sanctions and implement measures aimed at reducing Iran’s oil exports to zero. Trump criticized the Biden administration for not enforcing oil-export sanctions, claiming that Tehran has been able to fund its nuclear ambitions and support armed militias in the Middle East by bypassing these sanctions.

Trump also highlighted Iran's accelerated uranium enrichment efforts, which have reportedly reached 60% purity, near weapons-grade levels. Despite Iran's denial of any intention to develop nuclear weapons, the U.S. continues to push for maximum economic pressure to stop this progression.

Economic Impact and Global Reactions

Iran's oil exports had generated billions of dollars in recent years, with $53 billion in 2023 alone. However, during Trump’s first term, sanctions effectively brought these exports close to zero. Under Biden, Iran was able to evade many sanctions, leading to a slight increase in exports. With Trump’s renewed sanctions, U.S. oil prices were affected, reflecting market concerns about the potential global impact of these renewed measures.

The strategy faces challenges, especially given China's resistance to U.S. sanctions. Chinese firms remain among the top buyers of Iranian oil, and both China and Iran have developed methods to circumvent U.S. financial controls by using alternative currencies like the Chinese yuan.

The Path Forward: Snapback Sanctions and International Efforts

Trump has also directed his UN ambassador to collaborate with international allies to enforce the "snapback" of sanctions on Iran. These sanctions were originally lifted under the 2015 Joint Comprehensive Plan of Action (JCPOA) in exchange for Iran agreeing to restrict its nuclear program. However, the U.S. withdrew from the agreement in 2018, and Iran has since gradually violated the terms of the deal.

The snapback mechanism could re-impose sanctions on Iran, but European powers—Britain, France, and Germany—have indicated that they are ready to trigger these sanctions if necessary. However, they will lose the ability to do so once a 2015 UN resolution expires in October 2025. Iran’s UN ambassador has opposed the idea of snapback sanctions, deeming them "unlawful and counterproductive."