The Trump Administration Considers New Tactics to Disrupt Iranian Oil Trade

Since his return to the White House, Donald Trump has been adamant about reinstating “maximum pressure” on Iran, with a focus on targeting the oil trade. In a recent exclusive report by Reuters on March 6, it was revealed that the Trump administration is exploring ways to delay the shipping of Iranian oil by implementing tanker inspections.

According to the report, the Trump administration is contemplating utilizing a 2003 agreement aimed at preventing the spread of weapons of mass destruction to impede the delivery of Iranian oil. This strategy involves inspecting tankers in major sea lanes and critical points like the Malacca Strait.

Sources cited by Reuters suggested that the objective is to slow down Iran’s oil exports, making it harder for them to fulfill delivery contracts. The anticipated outcome is a disruption in the supply chain and a reduction in critical revenues generated by Iran’s oil exports, potentially cutting exports by 750,000 barrels per day.

Despite Western sanctions, Iran has managed to earn over $50 billion annually from oil exports in recent years. TankerTrackers.com reported a 50% increase in Iran’s crude oil exports in February compared to January, indicating a resilient oil trade.

The watchdog group United Against Nuclear Iran (UANI) tracks tankers involved in the Iranian oil trade. Since 2020, the database has expanded to over 510 tankers, some of which operate under false flags. Only 45% of these tankers have been blacklisted by the U.S., leaving room for further action.

In response to U.S. sanctions, Iran has threatened retaliation, including the closure of the critical Straits of Hormuz. Previous incidents have seen Iran seizing tankers in the Persian Gulf in a tit-for-tat manner following U.S. actions against Iranian oil cargos.

Iranian President Masoud Pezeshkian acknowledged the U.S.’s latest efforts in a recent speech, expressing uncertainties about unloading oil and gas cargos. Iran has adapted to sanctions by using smaller tankers like Aframax and Suezman vessels, providing flexibility in delivering oil to smaller ports.

Iranian media have reported on Reuters’ latest findings, but government officials are yet to respond to the developments in the oil trade disruptions.