US intends to reduce Iran's oil exports to 10% of current volume, Bessent says
US President Donald Trump aims to decimate Iranian oil sales to further weaken its Mideast adversary's economy, Treasury Secretary Scott Bessent said on Friday.
US President Donald Trump aims to decimate Iranian oil sales to further weaken its Mideast adversary's economy, Treasury Secretary Scott Bessent said on Friday.
"We are committed to bringing the Iranians to going back to 100,000 barrels per day of exports, as when Trump left office," Bessent told Fox News in an interview.
"Their economy is quite fragile right now. They have massive inflation, they have the gigantic budget deficit ... if we get them back to the Trump 1.0 levels. I believe that they will be in severe economic distress."
Iran exports around 1.5 million barrels per day (bpd), with China by far the biggest buyer. The so-called "maximum pressure" campaign of US sanctions on Iran starting in 2018 during Trump's first term brought exports to as low as 200,000 bpd.
Trump this month reinstated the so-called "maximum pressure" campaign on Iran from his first term, with the stated aim of driving its oil sales to zero.
Beset said the proceeds from oil sales fund Iran's "terrorist activities around the world" and described purchases by China and India as unacceptable.
The US dollar reached a new high against Iran’s currency this week and the current annual inflation rate has hovered at around 40% since 2019 according to official figures, with prices for food and other essentials rising sharply.
A series of stepped-up US sanctions beginning in October on Russian and Iranian tankers, companies and entities facilitating their oil trade is increasingly hampering oil exports which are the main source of revenue for both countries.
The shipment of 1,000 tons of sodium perchlorate was transported from China aboard the Golbon, which departed from Taicang port on January 21. The second vessel, the Jairan, has yet to depart, according to ship tracking data and intelligence sources cited by CNN.
Iran’s missile production infrastructure was severely damaged by Israeli strikes on Oct. 26 2024, which some experts believed would set back its solid propellant production by a year. However, the arrival of this shipment suggests that Iran could be resuming production sooner than anticipated.
Sodium perchlorate is a key precursor for ammonium perchlorate, an essential component in solid rocket propellant used in mid-range ballistic missiles.
Western intelligence sources cited by CNN estimate that the shipment could enable Iran to produce enough solid propellant for up to 260 Kheibar Shekan or 200 Haj Qasem missiles—both capable of reaching targets up to approximately 1,450 kilometers away.
The delivery was purchased for the Self-Sufficiency Jihad Organization (SSJO), a division of the Islamic Revolutionary Guard Corps (IRGC) responsible for missile development, according to CNN’s intelligence sources.
The Golbon and Jairan are operated by the US-sanctioned Islamic Republic of Iran Shipping Lines (IRISL), which Washington and London accuse of facilitating military-related transfers for Tehran.
Iran, lacking an effective air force, has heavily relied on developing short- and medium-range missiles, including a variety of ballistic delivery systems.
The United States and its European allies have long pushed for limits on Tehran's missile program, citing concerns that some missiles could eventually carry nuclear warheads.
Last year, Iran launched ballistic missile attacks on Israel twice, prompting the US and allied air defenses to intercept and shoot down most of the projectiles.
The Financial Times first reported on the shipment in January, citing Western security officials who estimated that the 1,000 tons of sodium perchlorate could yield 960 tons of ammonium perchlorate, producing approximately 1,300 tons of solid propellant—enough to power hundreds of mid-range missiles.
This shipment comes as Iran faces growing regional challenges, including the fall of its ally Bashar al-Assad in Syria and Hezbollah’s setbacks in Lebanon.
