- The U.S. has expanded sanctions on Iran’s petroleum and petrochemical sectors in response to Iran’s missile attack on Israel.
- The sanctions target Iran’s ability to fund its nuclear and missile programs, including actions against vessels in Iran’s “Ghost Fleet.”
- Gulf states are urging the U.S. to prevent Israeli attacks on oil fields to avoid retaliation from Iranian proxies.
The United States expanded sanctions on Iran’s petroleum and petrochemical sectors following an Iranian missile attack on Israel. These new sanctions aim to restrict Iran’s financial capabilities to support its nuclear and missile programs. The sanctions are part of an executive order that targets major sectors of Iran’s economy, specifically to reduce Iran’s access to financial resources, reports Reuters.
Crackdown on Iran’s “Ghost Fleet”
In addition to targeting Iran’s economic sectors, the sanctions include measures against the “Ghost Fleet”. It transports illicit Iranian oil globally.
Jake Sullivan, National Security Adviser, emphasized that these sanctions will further limit Iran’s financial support for terrorist groups and its missile progrms, posing threats to the U.S. and its allies.
Israeli-Iranian Tensions Escalate
Israel has vowed to respond to Iran’s missile attack on October 1, which was launched in retaliation for Israeli strikes in Lebanon and Gaza, as well as the killing of a Hamas leader in Iran.
President Joe Biden has suggested Israel explore alternatives to attacking Iran’s oil fields, given the potential for regional escalation.
Sanctions on Entities and Vessels
The U.S. Treasury Department now has the authority to sanction individuals or entities operating in Iran’s petroleum and petrochemical sectors.
Additionally, 16 entities and 17 vessels have been designated as blocked property due to their involvement in transporting Iranian petroleum and petrochemical products for the National Iranian Oil Company.
Disrupting Funds for Iran’s Weapons Programs
The U.S. State Department has imposed sanctions on six entities involved in Iran’s petroleum trade. It aims to cut off funding for Tehran’s weapons programs and support for terrorist proxies.
This move is aligned with U.S. efforts to disrupt money flow into Iran’s defense industry.
Iran’s Rising Oil Exports Under Biden
Despite sanctions, Iran’s oil exports have increased during Biden’s tenure, primarily due to China’s substantial purchases of Iranian crude oil.
Iran has also succeeded in evading sanctions, which has bolstered its oil trade.
Tighter Sanction Enforcement Considered
The Eurasia Group highlighted that the U.S. could reduce Iran’s oil exports by enforcing stricter sanctions through satellite imaging to monitor tanker movements.
Countries like Malaysia, Singapore, and UAE may face diplomatic pressure from the U.S. to support these efforts, although they are reluctant to favor Israel.
Targeting Chinese Firms
The report further suggests that targeting Chinese firms involved in shipping Iranian crude may be necessary, as China buys nearly 90% of Iran’s crude oil exports.
However, this approach requires strong diplomatic efforts to enforce compliance.
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Source: Reuters
