Trump hits Iran’s pocketbook as he dangles a carrot in Middle East speech

The Trump administration sanctioned nearly two dozen firms operating in Iran’s illicit international oil trade, as President Donald Trump delivered remarks in the Middle East – tempting the Islamic Republic with a "much brighter future" should it come to a nuclear agreement with the United States. 

The sanctions, announced by the Treasury Department’s Office of Foreign Assets Control Tuesday, target firms that operate in Iran’s oil trade. 

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Officials said the Iranian government allocates billions of dollars worth of oil annually to its armed forces to supplement budget allocations, underwriting the development of ballistic missiles and unmanned aerial vehicles, and financing regional terrorist groups. 

Treasury Department officials said Iran’s Armed Forces general staff and its main commercial affiliate, Sepehr Energy Jahan Nama Pars Company, continue to establish front companies and rely on buyers and facilitators to enable their sanctioned oil trade. 

Centrifuge machines in the Natanz uranium enrichment facility in central Iran, Nov. 5, 2019. (Atomic Energy Organization of Iran via AP, File)

Sepehr Energy often carries out its oil shipments through a series of "deals" between multiple front companies that it owns or controls, according to the Treasury Department, creating the "illusion of non-sanctionable trade between separate entities." 

"Many of the entities involved in Sepehr Energy’s oil shipments are part of an elaborate system of oil smuggling and money laundering, directly controlled by or acting on behalf of Sepehr Energy," the Treasury Department said, adding that it also controls Hong Kong-based front companies and uses them to "broker and receive shipments of Iranian oil delivered to independent so-called teapot refineries in China."  

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The sanctions came shortly after Trump delivered a speech in Riyadh, Saudia Arabia, urging Iran to take a "new and a better path." The Trump administration is in talks with Iran for a new nuclear deal. 

U.S. Trade Representative Jamieson Greer, left, and Secretary of the Treasury Scott Bessent after two days of closed-door discussions on trade between the U.S. and China, in Geneva, May 12, 2025. (Jean-Christophe Bott/Keystone via AP)

The president, during his speech, though, warned of "massive maximum pressure" if Iran does not come to an agreement. 

"As I have shown repeatedly, I am willing to end past conflicts and forge new partnerships for a better and more stable world, even if our differences may be profound," Trump said. "If Iran’s leadership rejects this olive branch... we will have no choice but to inflict massive maximum pressure, drive Iranian oil exports to zero."

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"Iran can have a much brighter future, but we will never allow them to threaten America and our allies with terrorism or a nuclear attack," Trump said. 

Trump had announced a 60-day time frame to reach an agreement with Iran over its illegal atomic weapons program. The first U.S. negotiating session with Iran commenced April 12. 

President Donald Trump has warned of "massive maximum pressure" if Iran does not come to an agreement. (Fayez Nureldine/AFP via Getty Images)

Trump's special envoy Steve Witkoff met with Iranian officials for a fourth round of nuclear talks over the weekend. 

The nuclear talks were "difficult but useful," Iranian Foreign Ministry spokesperson Esmail Baghaei said. A U.S. official, speaking on condition of anonymity to discuss the closed-door negotiations, offered more, describing the talks as being both indirect and direct, The Associated Press reported.

An "agreement was reached to move forward with the talks to continue working through technical elements," the U.S. official said. "We are encouraged by today’s outcome and look forward to our next meeting, which will happen in the near future."

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The Trump administration has said the flawed 2015 Obama-era Joint Comprehensive Plan of Action (JCPOA), also known as the Iran nuclear deal, did not prevent Iran from building an atomic bomb. 

President Donald J. Trump and Saudi Crown Prince Mohammed bin Salman meet at the Saudi Royal Court on May 13, 2025, in Riyadh. (Win McNamee/Getty Images)

Before leaving for his trip to the Middle East, Trump reiterated his stance on Iran's nuclear goals. 

"You can't have a nuclear weapon, but I think that they are talking intelligently," Trump said. "We're in the midst of talking to them, and they're right now acting very intelligent. We want Iran to be wealthy and wonderful and happy and great, but they can't have… nuclear weapons. Very simple. So I think they understand that."

A day before the start of talks, Iranian Supreme Leader Ali Khamenei welcomed chants of "Death to America" in Iran's capital, Tehran. 

"Your judgment is right," Khamenei told a crowd of supporters who called for the destruction of the U.S.

The Associated Press contributed to this report.