The United States has imposed a new wave of sanctions against Iranian oil exports, targeting an Iraqi businessman and his company for allegedly smuggling Iranian oil by blending it with Iraqi oil. The sanctions were announced on Thursday, despite a Washington-backed ceasefire between Israel and Iran having come into effect last month.

US Treasury Secretary Scott Bessent said, “Iran’s behavior has left it decimated. While it has had every opportunity to choose peace, its leaders have chosen extremism.”

The sanctions come after US President Donald Trump suggested that China could buy Iranian oil, implying that the US might lift its sanctions on Tehran’s energy exports. However, Trump later wrote in a social media post that he “immediately dropped all work on sanction relief” in response to statements by Iranian Supreme Leader Ali Khamenei claiming victory over Israel. Trump also claimed that he stopped Israel from assassinating Khamenei, saving him from a “VERY UGLY AND IGNOMINIOUS DEATH”.

The US joined Israel’s air strikes against Iran, which killed hundreds of Iranians, including civilians and top military officials. The US bombing operation set back Iran’s nuclear programme by one to two years, according to the Pentagon.

However, it is unclear where Iran’s stockpiles of highly enriched uranium are. Iran has passed a law suspending cooperation with the UN nuclear watchdog, the International Atomic Energy Agency (IAEA), over the agency’s failure to condemn the US and Israeli attacks.

Iranian Ministry of Foreign Affairs spokesperson Esmaeil Baghaei suggested that Iran is in indirect contact with the US – through Oman and Qatar – to find a diplomatic solution to the crisis. “Diplomacy must not be abused or used as a tool for deception or for simply a sort of psychological warfare against their adversaries,” Baghaei told Sky News. He added that Tehran feels its diplomatic efforts have been “betrayed”.

The US commitment to diplomacy has been questioned, with Trump reiterating a US commitment to diplomacy hours before Israel started the war last month. Days before the US attacks, he said he would make a decision on joining the war within two weeks to allow talks between Iran and European powers.

The situation remains volatile, with the international community watching closely for any developments that could lead to further escalation or a peaceful resolution.

The US sanctions against Iran are likely to further strain relations between the two countries, which have been tense for decades. The move is also likely to be seen as a sign of the US’s continued commitment to applying pressure on Iran, despite the recent ceasefire. As the situation unfolds, it remains to be seen how Iran will respond to the sanctions and whether the US will continue to pursue a path of diplomacy or further escalation.