Ever since taking over as US President, Donald Trump has given confused signals regarding his administration’s approach vis-à-vis Iran. On the one hand, he has spoken about tough measures and “maximum pressure” on the other he has been open to engaging with Iran. In his initial remarks on Iran, after his inauguration, Trump said: “There are many people at the top ranks of Iran that do not want to have a nuclear weapon.” Iran’s foreign minister, Abbas Araghchi while criticising Trump’s maximum pressure policy remarked, that it was possible that Iran would not go nuclear.

Saudi Arabia playing potential peacemaker?

There has also been talk of Saudi Arabia  playing the role of a potential peacemaker between Iran and the US. The Gulf nation’s relations with Iran have improved in recent years. Both countries had signed an agreement brokered by China in March 2023. Saudi Arabia would be keen that there is stability in the Middle East and would want to prevent Iran from going nuclear.

Russia-US talks held in Saudi Arabia

Significantly, talks between the US and Russia on ending the Russia-Ukraine conflict were held last month in Riyadh on February 18, 2025. The US delegation was led by US Secretary of State, Marco Rubio and the Russian delegation was led by Russian Foreign Minister Sergei Lavrov.  Donald Trump after his first conversation with Russian President, Vladimir Putin, had said that their first meeting would take place in Saudi Arabia. Apart from this, a meeting of Arab states — which explored possibilities for reconstruction of the Gaza strip – was held in Saudi Arabia. Leaders from Gulf nations, Egypt and Jordan met to explore alternatives to the Gaza plan of Donald Trump — according to which Gaza would be converted into a “Riviera” of the Middle East.

Trump’s maximum pressure policy vis-à-vis Iran

In recent weeks, the administration has begun to adopt tough measures vis-à-vis Iran. On Feb. 4, 2025, the Trump dispensation passed a document titled the National Security Presidential Memorandum/NSPM 2. Said the memorandum: “The secretary of state shall modify or rescind sanctions waivers, particularly those that provide Iran any degree of economic or financial relief, including those related to Iran’s Chabahar port.”

This is significant because India has invested heavily in the Chabahar Port project – which is India’s gateway to Afghanistan and beyond. The India Ports Global Limited (IPGL) has been operating the port since 2018, while India signed a 10-year agreement with Iran in May 2024 for operating and developing the port.

India has been pushing for Chabahar to be part of the International North-South Transport Corridor (INSTC) Corridor. India will get access to Russia and Europe via the INSTC. It would be pertinent to point out that during his previous tenure, Trump had provided a sanctions waiver to India for the construction of the Chabahar Port.

Sanctions on Iran

On February 24, 2025, Iran imposed sanctions on several people and oil tankers across China, the United Arab Emirates, India and other countries that allegedly finance Iran and assist in attacking militant groups. US Secretary of the Treasury Scott Bessent said that the Trump administration: “will use all our available tools to target all aspects of Iran’s oil supply chain, and anyone who deals in Iranian oil exposes themselves to significant sanctions risk”.

Bessent has called for a tougher sanctions policy vis-à-vis Iran and has been critical of the Biden administration’s policies vis-à-vis Iran. Donald Trump had also blamed the Biden administration’s “soft” approach vis-à-vis Iran, especially the relaxation of sanctions, for the current instability in the Middle East. Iran has refused direct talks with US, if the Trump administration continues to apply its maximum pressure policy on Tehran.

The tough economic measures vis-à-vis Iran are important for several reasons. First, they will leave limited space for engagement between the US and Iran. It remains to be seen if a maximalist policy by the Trump administration will achieve the desired results. Second, several countries which share close ties with the US and seeking to build economic ties with Iran will be closely watching the Trump administration’s approach vis-à-vis Iran and would be hoping that tensions between both countries do not escalate, since they themselves share reasonable ties with Iran. A prominent example of such a country is India. Third, the role of Saudi Arabia in acting as a potential peacemaker between Iran and the US would be crucial.

[Photo by the White House, via Wikimedia Commons]

The views and opinions expressed in this article are those of the author.

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