Washington, D.C. – US President Donald J. Trump is set to sign an executive order on Tuesday reinstating the “maximum pressure” policy against Iran’s regime, a strategy he first implemented during his initial term in office. The order will reimpose severe economic sanctions targeting Iran regime’s oil industry and any company conducting business with it.

Renewed Sanctions to Cripple Iran’s Economy

According to U.S. officials, the goal of the renewed sanctions is to drive Iran regime’s oil exports to zero and block any pathway for the Islamic Republic to develop a nuclear weapon. The Trump administration also views these sanctions as a means to weaken Iran regime’s economy and cut off financial support to its regional allies and militant groups, including Hamas in Gaza, Hezbollah in Lebanon, and the Houthis in Yemen.

Trump first introduced the “maximum pressure” policy in 2018 after withdrawing the United States from the Joint Comprehensive Plan of Action (JCPOA), commonly known as the Iran nuclear deal. Under this policy, Iran regime’s economy suffered a severe downturn, with its GDP halving by 2020 and oil exports plunging to historic lows of under 500,000 barrels per day. However, after President Joe Biden rolled back Trump’s sanctions in 2021, Iran’s oil exports surged back to 1.5 million barrels per day, and its GDP rebounded to $413 billion from a low of $240 billion.

International Reactions and Nuclear Concerns

European powers, including Britain, France, and Germany, have expressed concerns about Iran’s nuclear ambitions. In December, they informed the United Nations Security Council of their readiness to trigger a “snap-back” mechanism, which would reinstate all international sanctions if necessary to prevent Iran from acquiring nuclear weapons. However, their ability to take such action will expire on October 18 next year when a 2015 U.N. resolution lifting sanctions on Iran is set to lapse.

Meanwhile, Rafael Grossi, head of the U.N.’s International Atomic Energy Agency, warned at the World Economic Forum in Davos last month that Iran has accelerated its uranium enrichment to near weapons-grade levels. Iran, however, continues to deny that it is seeking to develop nuclear weapons.

As tensions escalate, Trump’s reinstated “maximum pressure” policy is expected to reshape U.S.-Iran relations.

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