Lawmakers Call for More Enforcement of Iran Oil Sanctions

A bipartisan group of six House members urged the Biden administration last week to step up enforcement of oil sanctions against Iran to reduce Tehran’s ability to fund terrorism.

“Existing sanctions must be more effectively enforced in order to promptly secure an end to Iran’s ability to circumvent these trade restrictions,” the lawmakers wrote in a letter to President Joe Biden. “Otherwise, Iran will continue to use its oil revenues to provide material support to its terrorist proxies, such as Hamas, Hizballah and the Houthis.”

The lawmakers said Iran is evading sanctions by falsely claiming its exported oil originated from other countries, such as Malaysia, Oman and the United Arab Emirates, and by masking the movement of its oil by transporting it in a “dark fleet” of tankers. Iran exports about 1.5 million barrels of oil a day, mostly to China, generating billions of dollars a month in revenue, the letter says.

The letter notes that the FY 2024 national security supplemental appropriations bill that Biden signed into law in April (see 2404240043) contains new Iranian oil sanctions tools. The Stop Harboring Iranian Petroleum (SHIP) Act requires sanctions on foreign ports and refineries that process Iranian oil, and the Iran-China Energy Sanctions Act requires sanctions on Chinese financial institutions that process Iranian oil transactions. The administration has said it is working to implement the new laws (see 2408120032).

The letter was led by Rep. Adam Schiff, D-Calif., and co-signed by Reps. Mike Lawler, R-N.Y.; Josh Gottheimer, D-N.J.; Jared Moskowitz, D-Fla.; Claudia Tenney, R-N.Y.; and Young Kim, R-Calif.

Asked to comment on the letter, a State Department spokesperson insisted the administration isn't easing up on Iran and its problematic behavior. “Rather, we continue to increase pressure,” the spokesperson said. “Our extensive sanctions on Iran remain in place, and we continue to enforce them.”