Trump signs executive order preventing Iran from possessing a nuclear weapon.. What does that mean?

"The Trump administration will implement a campaign aimed at reducing Iran's oil exports to zero as part of maximum pressure efforts," he added.

Iran's oil exports

Iran's oil exports generated $53 billion in revenue in 2023 and $54 billion the previous year, according to estimates from the U.S. Energy Information Administration.

OPEC data also showed that production in 2024 recorded its highest levels since 2018. Iran's mission to the United Nations in New York did not immediately respond to a request for comment from Reuters.

Oil prices were mixed on Tuesday on news of Trump's plans.

"The US envoy to the United Nations will work with key allies to complete the re-imposition of international sanctions and restrictions on Iran," the official said.

Trump's maximum pressure policy in his first term sought to "impose strong sanctions to strangle Iran's economy and force it to negotiate a deal that would hamper its nuclear and missile programs."

The Biden administration has not significantly eased Trump-imposed sanctions, but there is debate about how strictly they should be enforced.

'Quick snapback' of Iran sanctions

Britain, France and Germany told the UN Security Council last December that they were prepared, if necessary, to activate a so-called "snapback" of all international sanctions on Iran to prevent it from obtaining a nuclear weapon.

Those countries will lose the ability to take that action on October 18 next year, when a 2015 UN resolution expires.

The decision relates to an agreement between Iran, Britain, Germany, France, the United States, Russia and China, under which sanctions on Tehran were lifted in exchange for restrictions on its nuclear programme.

"Resorting to re-imposing sanctions on Tehran would be illegal and counterproductive," Iran's UN envoy Amir Saeed Erfani said.

European and Iranian diplomats met in November and January to discuss whether they could work to ease regional tensions, including over Tehran's nuclear program, before Trump returns to power.

At the World Economic Forum in Davos last month, IAEA Director General Rafael Grossi said that “Iran is accelerating its uranium enrichment process to near weapons grade,” and Tehran has denied wanting to develop a nuclear weapon.

Source: Reuters