Encouraged by Bolton, Trump continues his punishment of Iran

U.S. Moves to Stop All Nations From Buying Iranian Oil

This will force up gasoline prices and hurt relations with China, India, and three other nations that were given waivers, now cancelled, to buy Iranian oil.

By increasing sanctions, senior American officials are aiming to weaken the power of the ruling clerics in Iran and force major political change on the country.

Since last year, Mr. Pompeo has cited a list of 12 actions he wants to see Iran take before easing sanctions, including ending its support for militias in the Middle East.

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The New York Times reported last month that the American sanctions have forced Iranian-backed militias to tighten their payrolls.

“We have watched Iran have diminished power as a result of our campaign,” Mr. Pompeo said on Monday.

The further cutoff of oil revenue is expected to make life harder for people in Iran, which already is beset by a critical medicine shortage.

European nations have opposed the Trump administration’s pressure campaign against Tehran and have set up a transaction entity known as a special purpose vehicle to try to do some business with Iran, though that is not expected to include oil purchases.

Mr. Pompeo said the United States has been in “constant discussions with allies and partners” to find an alternative source of oil.

American officials have also spoken to counterparts in Saudi Arabia and the United Arab Emirates about increasing oil production, and officials in those nations “have assured us they will ensure an appropriate supply for the markets,” he said.

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Nevertheless, the global oil market will almost certainly tighten, especially with American sanctions on Venezuela and fighting escalating in Libya.

Both nations are major oil producers and suppliers to the countries that traditionally have also relied on Iran.

China is by far Iran’s biggest market, importing 500,000 barrels a day of Iranian crude, and Beijing has repeatedly objected to American sanctions.

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“Iran sanctions are going to be a big challenge for the U.S.-Chinese relationship,” he said.

“Chinese imports from Iran have been going up this year, not down. Within the next couple of months, if they are not at zero, the law requires that the U.S. sanction financial institutions in China that facilitate those transactions, and right now that includes the People’s Bank of China.”

Turkish leaders are certain to be upset by the announcement.

Last week, Ibrahim Kalin, a senior adviser to the president of Turkey, pressed officials in Washington to extend a waiver to Turkey.

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The question of whether to continue the waivers had generated intense debate in Washington in recent weeks.

John R. Bolton, the national security adviser, strongly advocated discontinuing the waivers, while Mr. Pompeo had been advised by some State Department officials to continue them.

Republican senators — led by the delegation from Texas, the center of the American oil industry — have urged Mr. Trump to end the waivers.