US Plans "Inspection Mechanism" At Sea Aiming Iranian Oil Exports (X image @smutoro)
Reportedly, Donald Trump administration is mulling a plan to stop and inspect Iranian oil vessels transiting the sea under an international mechanism. The move is aimed at stopping the “spread of weapons of mass destruction (WMDs),” according to sources cited by Reuters. The plan is new measurement going to be adopted to clamp down on Iranian oil sales, which US claims an effort to stifle Tehran’s funding for its atomic energy program.
“Trump officials are now looking at ways for allied countries to stop and inspect ships sailing through critical chokepoints such as the Malacca Strait in Asia and other sea lanes. That would delay delivery of crude to refiners. It could also expose parties involved in facilitating the trade to reputational damage and sanctions,” the sources told the news agency.
“You don’t have to sink ships or arrest people to have that chilling effect that this is just not worth the risk. The delay in delivery … instills uncertainty in that illicit trade network,” one source clarified.
US has been on the edge regarding Tehran’s ability to produce atomic energy. Right after assuming power for the second time, the Republican signed executive orders seeking to push “maximum pressure” on Iran, doubled down on the sanctions.
Also Read: How Iran Deals With US Sanctions
Reportedly, Trump’s government has studied the possibility of the new inspection mechanism being organized under the 2003 Proliferation Security Initiative, which was led by Washington and aims to prevent the trafficking of WMDs.
“This mechanism could enable foreign governments to target Iran’s oil shipments at Washington’s request”, another source told Reuters.
Attempts made by the government of former US president Joe Biden’s administration to seize Iranian oil shipments have prompted retaliation by the Islamic Republic and saw Tehran seize a number of tankers last year and the year before. In 2023, revenues from Iranian oil exports to China and other countries reached around $53 billion, despite US sanctions.
Trump has particularly focused on cracking down on Iranian oil shipments. The maximum pressure policy was started during Trump’s first tenure.
Washington imposed sanctions on Tehran on 24 February, targeting what it called as a “shadowy” fleet made up of companies, individuals, and vessels involved in transporting Iranian oil in an effort to circumvent unilateral US sanctions. Twenty-two individuals and 13 ships were hit by the fresh batch of US sanctions on Iran, said media report.
As per US Treasury Department, this “shadow fleet” transports millions of barrels of Iranian crude oil worth hundreds of millions of dollars.
Tehran slammed Washington for expressing a willingness to hold nuclear negotiations and, at the same time, resuming a full-fledged economic war against the country. Trump has said that he is ready for dialogue with Tehran, but the country should not do anything related to atomic energy.
Also Read: Leaked Documents Expose US’ Blueprint To Topple Iran Regime: Report
The aggressive sanction against Iran led the country to a spiraling economic crisis recently, causing its currency to plummet to a record low against the dollar. It has led to the freefall of Iranian Rial (IRR), especially due to the given uncertainty surrounding future nuclear negotiations and sanctions relief. The foreign exchange market and gold prices experienced sharp volatility. IRR plunged to a historic low of 850,000 rials ($1) on 6 February following Trump’s executive order. Within days, the currency further weakened to 940,000 rials ($1) before slightly strengthening to 880,000 rials ($1).
Reportedly, since the President Masoud Pezeshkian took power on July 28, 2024, the rial has lost nearly 57 percent of its value, having stood at 590,000 rials ($7) at the time. Gold market in the country also faced huge turmoil. The price of the Bahar Azadi gold coin skyrocketed to 740 million rials ($800), while gold per gram reached 60 million rials ($65) – an all-time high.
Iran also faced scorching inflation. Recently, Tehran’s annual inflation rate has fluctuated between 30 percent and 40 percent. The latest data from the Statistical Center of Iran (SCI) recorded an annual inflation rate of 32 percent for the 12-month period ending on 20 January 2025, reflecting a slight decline of 0.5 percent from the previous period.
(With inputs from agencies)
