Sanctions over?

Will the US drop its sanctions on Iran’s oil and gas industry following Trump’s now viral Truth Social post about letting China continue to buy Iran’s oil? As with most things Trump-related, there does not appear to be a clear answer. The Truth Social post and Trump’s comments on Wednesday (June 25), signalling a potential easing in enforcement to help Iran rebuild following the US-Israeli strikes, seem to indicate an easing of sanctions. However, the White House and Trump himself have made clear that the US has not yet given up its ‘maximum pressure’ campaign against Iran. But still, many local analysts are cautiously optimistic that we will see a gradual lifting of sanctions on a neighbour that has the world’s second-largest proven natural gas reserves and third largest proven oil reserves. Pakistan has already tried to tap into this massive energy potential, with the Iran-Pakistan gas pipeline agreement being signed in 2009 to supply Iranian gas to the country. While work on the Iranian side of the pipeline has been completed, work on the Pakistan side is yet to begin. Last year, the Pakistani government indicated that it would want to request a sanctions waiver for the pipeline from the Trump administration. While Trump’s post referred specifically to oil sales to China, it is not unreasonable to hope that this might also mean a softer stance towards other Iranian energy exports, opening a door for Pakistan to ease its energy woes.

Even without new exports, a softer