The US House of Representatives has approved tough new sanctions targeting Iran’s oil exports and finances in a bipartisan vote. The legislation aims to crack down on countries and companies that violate existing US sanctions by purchasing Iranian crude oil or engaging in prohibited transactions with Iranian banks.
The measures would expand sanctions to include foreign ports, vessels, and refineries involved in shipping or processing Iranian oil. Significantly, it would also impose secondary sanctions on Chinese financial institutions conducting business with sanctioned Iranian banks related to petroleum purchases.
The sanctions bill was passed 360-58 as part of a $95 billion package providing aid to Ukraine, Israel, and Taiwan. It was pre-negotiated with Senate Majority Leader Chuck Schumer and has White House support, paving the way for likely Senate approval in the coming days.
Similar legislation cited by Bloomberg notes that about 80% of Iran’s roughly 1.5 million barrels per day of oil exports currently go to independent Chinese refineries. While the proposed sanctions could impact those exports and raise global oil prices, the legislation includes waiver provisions the President could activate.
Matt Zweig, Senior Policy Director at the lobbying group Foundation for Defense of Democracies suggests the new sanctions mark a pivotal shift to ramp up economic pressure on Iran reminiscent of strict measures imposed from 2009-2013.
“These measures have the potential to reshape dynamics in the region. However, their effectiveness hinges greatly on the administration’s enforcement and strategic utilization of these tools,” he said.
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