Over 40 Lawmakers Urge Biden to Promptly Enforce New Iran Oil Sanctions
A general view of the US Capitol
A bipartisan group of over 40 US House lawmakers has called on the Biden administration to “expeditiously implement” stringent new Iran sanctions targeting the country’s oil exports to China.
The House lawmakers signed a letter to US Secretary of State Antony Blinken and Treasury Secretary Jannet Yellen, urging the Biden Administration to implement new sanctions on Iranian petroleum, enacted through the SHIP Act and the Iran-China Energy Sanctions Act.
"The illicit Iranian oil trade has allowed Iran to raise over $100 billion just since 2021, allowing the regime to invest in its terrorist-proxies and sow insecurity across the Middle East," the bipartisan group of congresspeople led by Mike Lawler (R-NY-17), Josh Gottheimer (D-NJ-05), and Jared Moskowitz (D-FL-23) argued in their letter.
"However, Iran does not act alone. China is the largest purchaser of Iranian oil, buying a significant majority of 80-90% of these exports. We have been clear that the US must act decisively to stop the Iran-China oil trade and eliminate this significant source of Iran’s revenue. Existing sanctions on Iranian oil must be strictly enforced, but it is also imperative that the Administration fully utilize the new authorities created by H.R. 815." the letter added.
The lawmakers concluded that "as Iran continues its campaign of terror, we urge you to expeditiously implement sanctions enacted through the SHIP Act and the Iran-China Energy Sanctions Act."
Both bills passed the House with overwhelming bipartisan support last year and were later incorporated into the most recent supplemental national security package. They became law when President Joe Biden signed that legislation on April 24.
The SHIP Act requires the imposition of sanctions on foreign ports and refineries that knowingly process Iranian oil.
The Iran-China Energy Sanctions Actalsorequires the imposition of sanctions on Chinese financial institutions that process transactions involving Iranian oil.
The Monday letter signed by the 41 US lawmakers is the latest call by members of the Congress for the Biden administration to do more to stop the flow of Iran's oil exports to China.
The Biden administration's acting special envoy for Iran says he has discussed Tehran's "destabilizing" activities in South America during a visit to Brazil.
In a post on his X account on Tuesday, Abram Paley said he's returned from Brazil where he had "constructive meetings with officials on our concerns about the destabilizing activities of Iran and its proxies in the region, sanctions enforcement, CT cooperation and our shared nonproliferation goals."
The Islamic Republic’s activities in the Americas have stirred concerns especially after its warships docked in Brazil last year, making Iran’s presence a little too close for comfort to the Biden administration.
With Brazil refusing to join the US in sanctioning Iran, dating back to 2010, options are running out as to how one of the world’s biggest powers, can fight the threat of Iran looming closer to its shores with a lack of legal mechanisms in place.
President Luiz Inacio Lula da Silva's government was urged by the Biden administration to send the Iranian warships -- IRIS Makran and IRIS Dena -- away in January 2023, but it finally bowed to Tehran, allowing them to dock in February.
The presence of the Islamic Republic in Latin America has been a growing concern for the US in recent years with several Congressional reports presented in different Senate and House committees detailing Iran’s influence in the region.
The UN’s International Atomic Energy Agency reportedly paid hard cash to a US sanctioned Iranian regime atomic weapons scientist in Vienna in early 2022 and sent Tehran-controlled nuclear researchers to Russia for training.
The mass circulation German tabloid Bild on Sunday reported that it obtained “confidential files" of the Iranian atomic program.
The Bild wrote “As the documents show, representatives of the UN agency met with Javad Karimi-Sabet in Vienna in early 2022…. Karimi-Sabet has been on a US sanctions list since 2020 and is considered one of the masterminds in the development of the Iranian atomic bomb. According to internal emails, the IAEA paid Karimi at the meeting. Since a bank transfer was not possible due to the sanctions, the scientist was paid the money in cash.”
Karimi-Sabet is the vice chairman of the Atomic Energy Organization of Iran (AEOI).
The IAEA told the Bild that US sanctions are not applicable to its work and did not deny the payment.
“As part of the United Nations (UN) system, the IAEA follows the UN sanctions regulations and does not implement national sanctions regulations, “noted the IAEA.
When asked about the Bild story, which was headlined “Did the UN help the mullahs build the atomic bomb?, David Albright, one of the world’s leading experts on the Islamic Republic of Iran’s illicit nuclear program, told Iran International “I do not agree with the claim that the IAEA is contributing to Iran's nuclear weapons program. Nonetheless, there are many issues with the IAEA's technical support programs when it comes to states violating their safeguards agreements in fact or by intention. Today, Iran should not be benefiting from IAEA technical support programs.”
Albright, physicist and founder and president of the Institute for Science and International Security in Washington, D.C., added “The visit by Karimi is deeply troubling because of his role in establishing Iran's centrifuge program. See photo from our website from earlier days; In this picture from 2008, President Ahmadinejad holds a carbon fiber rotor tube; visible is also a bellows. Karimi is standing to the left of Ahmadinejad, who was touring Natanz. Karimi is likely still working on centrifuges, based on some of his recent publications. “
Albright added Karimi-Sabet “worked in other sensitive nuclear areas, not just on centrifuges.”
The Bild reported that the confidential documents revealed that the IAEA launched funding programs for Iranian nuclear science. The IAEA said, according to Bild’s information, that project “IRA2018001” was coordinated with the Iranians in 2019, with the aim of “Improving the skills and knowledge of scientists and improving the hardware and software infrastructure, which contribute to improving the operation and use of research reactors.”
The paper added “The IAEA also financed numerous training programs for scientists from Tehran in Russia…selected experts were sometimes under the wing of Putin's Rosatom for weeks - the state authority is also responsible for the civil and military use of nuclear energy.”
An IAEA spokesman confirmed the training to the Bild; "The IAEA's Technical Cooperation (TC) program supports member states in (...) development and management of nuclear knowledge." The IAEA added that it ensured that the Iranian participants did not obtain knowledge about nuclear weapons during the training.
Ukraine’s president has long suspected that the quid pro quo between Iran and Russia entailed Tehran receiving support for its atomic weapons program from Moscow in exchange for providing lethal drones to Russia in its illegal war to conquer the Ukraine.
Separately but related, in March, 2023 Fox News Digital reported that the clerical regime in Tehran allegedly secured secret deals with Russia to guarantee deliveries of uranium.
According to the Fox News article, Putin agreed to return enriched uranium that it received from Iran if a prospective nuclear deal collapses. According to the intelligence officials cited in the Fox report, the Iranians exploited the opportunity during Putin’s pressing need for drones and demanded a "nuclear guarantee" that would enable Iran "to quickly restore its uranium stock to the quantity and enrichment levels it had maintained before the resumption of the agreement."
In the first debate among Iran’s presidential candidates, hardliners denied the impact of nuclear-related sanctions, while two candidates said improving international ties is crucial for fixing the economy.
The three-hour long debate on Monday among six hand-picked candidates was focused on “controlling inflation and growth of production”. Three of the five televised debates planned before the June 28 elections will focus on economy. The next debate is scheduled for June 20.
In the debates and interviews, former nuclear negotiator Saeed Jalili, incumbent Mayor of Tehran Alireza Zakani, and hardliner Amir-Hossein Ghazizadeh-Hashemi defended the “achievements” of Raisi’s administration. They faced opposition from pro-reform Masoud Pezeshkian, moderate-conservative Mostafa Pourmohammadi, and at times Parliament Speaker Mohammad-Bagher Ghalibaf, who criticized the administration's performance in veiled terms.
Hardliner candidates are acutely aware of the Raisi administration's disastrous economic performance, yet they refuse to take responsibility for it and sometimes even praise it, according to France-based journalist Seraj Mirdamadi. “But they blame [the pro-reform Masoud] Pezeshkian unfairly for the performance of [Hassan] Rouhani’s government.”
Speaking in vague and difficult to understand terms, Jalili, insisted that sanctions did not matter, and that the state of the economy could be improved by relying on “domestic potentials,” an argument often made by loyalists of Supreme Leader Ali Khamenei. According to him, an economic growth rate of eight percent as prescribed by the 7th Development Plan is feasible, while others argue that tens of billions of dollars is needed to achieve such a high rate.
Presidential candidates attend an election debate at a television studio in Tehran, Iran, June 17, 2024.
Ghalibaf, however, prescribed negotiations to lift the sanctions if for every step that Iran took, presumably to limit its nuclear program, the Western side was prepared to provide adequate incentives in return.
Ghalibaf has been criticized for calling the removal of sanctions a priority for his government, while the parliament in December 2020 under his leadership approved a bill hardening Iran’s negotiating position. “Why did you approve the catastrophic ‘Strategic Action Plan to Lift the Sanctions’ to prevent the revival of the JCPOA?” reformist commentator Abbas Abdi asked Ghalibaf in a tweet.
The December 2020 legislation called for reducing Iran's commitments under the 2015 nuclear deal and obliged the government to escalate the nuclear crisis.
All of the four hardliners, including Ghalibaf, insist that the sanctions are “unfair” and “cruel” but also argue that Iran has succeeded in circumventing them and is selling its oil without much trouble.
In a tweet after the debates, political commentator Reza Nasri contended that hardliners’ claims were contradictory. “How can sanctions which ‘are not a problem anymore’ and have been neutralized be ‘cruel’ at the same time?” he asked.
However, there is a major divide between Ghalibaf and Jalili who is the candidate of ultra-hardliners. Their supporters have been highly intolerant of each other, insisting that one must withdraw in favor of the other to ensure the presidency remains within the "revolutionary front."
Zakani and Ghazizadeh-Hashemi, neither of whom has a realistic chance of winning, appeared to play a supporting role for Jalili in the debate. They may withdraw in his favor after the debates, similar to how Jalili withdrew in favor of Raisi in the 2021 elections.
In contrast to the hardliners, pro-reformist Pezeshkian and moderate-conservative Pourmohammadi emphasized the crippling impact of sanctions. They called for improving relations with the international community as a means to help Iran overcome its economic difficulties.
Many observers noted that Pourmohammadi, who spoke more clearly and openly than the other candidates, appeared to be the strongest contender in the debate. But there are no independent opinion polls in Iran, and it is impossible to gauge the impact of the debate.
Pezeshkian emphasized the detrimental impact of sanctions and strained international relations on the country’s economy, asserting that all political groups must collaborate to effectively implement existing economic plans. He argued that what his rivals term 'circumventing sanctions' has often led to corruption.
For the first time in the history of election debates, candidates were shown participating in a group prayer before heading to the studio, where they took their seats assigned by a draw.
Candidates largely avoided seriously challenging each other or criticizing the economic failures of the Raisi administration, following the "recommendation" of Supreme Leader Ali Khamenei.
The state broadcaster had warned the candidates beforehand that any mudslinging or discussion of irrelevant topics during the debate would result in immediate and direct intervention by the Election Campaign Regulation Committee.
According to a telephone poll conducted by Shenakht, a polling agency claiming to be private, between June 15-16 with a sample of 1,000 respondents, Ghalibaf secured the support of 29 percent of voters who were certain or undecided about voting. He was followed by Masoud Pezeshkian with 21 percent and Saeed Jalili with 18 percent. However, different polls conducted by different government or political groups reveal different results. Overall, none of these polls can be considered fully reliable.
Some politicians indicate that discussions are currently taking place between the Ghalibaf and Jalili camps to decide whether one of them should withdraw to counter Pezeshkian's competition.
In response to a question during one of his televised interviews about the possibility of one or more “revolutionary” candidates withdrawing to boost another's votes, Ghalibaf claimed he was “more prepared” than the other candidates, hinting that he expected Jalili to withdraw.
However, on Monday, Jalili’s campaign manager Mohsen Mansouri refuted any possibility of withdrawal unless they determine there is “a candidate better than Mr. Jalili.”
Iran has imported at least $10 million worth of drone engine parts over the course of two months from countries including China, Turkey, the UAE, Germany, and even the US despite global sanctions.
Data from Iran's customs organization, analyzed by Iran International, showed that several items listed under a US advisory guide were imported in the first two months of the current Iranian year, which began on March 20.
Earlier this month, the US issued an advisory to alert the public about the threat posed by Iran’s procurement, development, and proliferation of unmanned aerial vehicles (UAVs).
Given Iran's dependence on foreign procurement for items it cannot produce domestically, specific trade product codes were identified by the US so that “exporters, manufacturers, distributors, and financial institutions” avoid unintentionally contributing to Iran’s UAV programs. Among these codes is 840710, which pertains to aircraft spark-ignition reciprocating or rotary internal combustion piston engines.
The Islamic Republic’s customs report indicated that between late March and May 2024, approximately $10 million worth of goods with this code were imported from China, Hong Kong, Thailand, Germany, the UAE, Russia, Turkey, Italy, the US, Qatar, and Oman.
Following Iran's significant transfer of lethal drones to Russia starting in mid-2022, sanctions have been imposed by the US, UK, and EU against Iranian individuals and entities involved in the UAV supply chain, as a violation of UN Security Council Resolution 2231.
In February, hackers revealed that Iran was receiving gold from Russia as partial payment for the drones.
The hackers breached the Iranian Revolutionary Guard Corps (IRGC) email servers, uncovering data on the sale of Shahed drones to Russia via a front company, Sahara Thunder.
In April, the US Treasury, in coordination with the UK and Canada, targeted Sahara Thunder, accusing it of supporting the IRGC and Russia's war in Ukraine. The Treasury highlighted Sahara Thunder's pivotal role in designing, developing, manufacturing, and selling thousands of drones, many of which were transferred to Russia.
Additionally, the Treasury targeted Sahara Thunder's leadership and shipping network, facilitating the sale and shipment of Iranian commodities to China, Russia, and Venezuela.
The sanctions followed Israel's call for international support after Iran's direct assault in April, which involved over 300 missiles and drones launched from Iran, most of which were intercepted by Israel and its allies.
Tehran asserted that the attack was a retaliation for an Israeli airstrike on its consulate in Syria on April 1, which resulted in the deaths of IRGC commanders.
Additionally, after Tehran's attack, the EU expanded its sanctions on Iranian drone and missile producers, complementing existing measures against Iran for selling drones to Russia for use in the Ukraine conflict.
Furthermore, Iran's exports are not limited to Russia. It has reportedly provided weapons technology to militant groups in the region, such as the Houthis.
Since November, the Houthis have utilized Iranian-provided missiles and drones to target commercial vessels in the Red Sea, an essential artery for global trade. Initially triggered by the Israeli military operations in Gaza, these attacks have significantly disrupted maritime commerce in the area.
The Houthis' offensive in the Red Sea commenced following a directive from Iran's Supreme Leader, Ali Khamenei, urging Muslim nations to obstruct Israeli trade routes.
Ali Shamkhani, advisor to the Supreme Leader and apparent nuclear negotiator, stated on Friday that Iran "won't bow to pressure" amidst US warnings regarding its uranium enrichment activities.
“Iran's nuclear program relies on national will and development strategy,” Shamkhani wrote on X. “The US and some Western countries would dismantle Iran’s nuclear industry if they could.”
The US issued a warning to Iran, stating they will “respond accordingly” if Iran continues to accelerate its nuclear program. This came shortly after the UN nuclear watchdog, the International Atomic Energy Agency (IAEA), highlighted Tehran's expanding uranium enrichment.
The IAEA’s report revealed Iran's response to a censure resolution, indicating expanded uranium enrichment at two underground sites. Iran rapidly installed more uranium-enriching centrifuges at its Fordow site and began work on additional ones at its Natanz facility, the report said.
A week ago, The IAEA's Board passed a resolution urging Iran to cooperate and reverse its decision to bar inspector visits, with the US stressing the need for Iran's compliance. Britain, France, and Germany tabled the resolution, which the US reportedly opposed but later endorsed. Only Russia and China voted against the measure.
Shamkhani, an old-guard military figure who served as the secretary of Iran’s Supreme National Security Council until last year, had previously warned of a "serious and effective response" if European nations pursued the resolution.
According to an IAEA assessment, Iran is enriching uranium to 60% purity, approaching the 90% threshold typical of weapons-grade material. Additionally, it has accumulated enough material for additional enrichment, potentially resulting in three nuclear warheads.