MADISONVILLE, La. – Senator John Kennedy (R-La.), alongside a group of Republican senators, has called on the Biden administration to expedite the implementation and enforcement of sanctions on Iranian oil. The concerns, directed to Treasury Secretary Janet Yellen, focus on delays in enacting measures outlined in the Stop Harboring Iranian Petroleum (SHIP) Act, signed into law in April.
Call for Action
Kennedy and his colleagues emphasized the critical importance of targeting Iran’s oil sector, which they identified as a significant source of funding for terrorism and nuclear development.
“Congress has consistently identified Iran’s oil sector as a critical area for sanctions due to its significant role in financing destabilizing regional terrorism and nuclear development. Unfortunately, delays in fully implementing the SHIP Act remain a concern, as does the need for increased sanctions enforcement,” the senators wrote.
Concerns Over Lax Enforcement
The lawmakers pointed to insufficient enforcement, citing evidence of nations, particularly in Southeast Asia, openly disregarding U.S. sanctions by facilitating Iranian crude oil sales to China. They highlighted Malaysia as a key player, with trade data indicating oil exports to China exceeding the country’s production capacity—a clear sign of Iranian involvement.
“To address these deficiencies, it is critical that Treasury deploys all available enforcement tools and fully engages in monitoring and sanctioning illicit oil transactions involving Iran,” the senators stated.
Intelligence and Monitoring Efforts
The letter urged Treasury to leverage all intelligence capabilities to track Iranian oil exports. Groups like United Against Nuclear Iran (UANI) have been instrumental in monitoring these activities, using tools like the Tanker Tracker and Ghost Armada analysis to trace shipments of Iranian oil.
“Iran’s illicit oil exporting tactics are well known,” the senators noted. “Given the capabilities of the United States Government, we are confident that Treasury has access to additional intelligence sources to further these efforts.”
Requests for Action
The senators requested that Treasury:
- Provide a comprehensive assessment of foreign financial institutions involved in facilitating Iranian oil exports.
- Examine vessels identified by UANI to determine if they meet the criteria for sanctions.
- Deliver a briefing on ways to strengthen sanctions enforcement.
- Update the Financial Crimes Enforcement Network (FinCEN) advisory to financial institutions regarding tactics used by Iran to evade sanctions.
The senators have set a deadline of Dec. 20, 2024, for the Treasury Department to provide updates on these measures.
Bipartisan Pressure
Joining Kennedy in signing the letter were Senators Tim Scott (R-S.C.), Mike Crapo (R-Idaho), Mike Rounds (R-S.D.), Thom Tillis (R-N.C.), Bill Hagerty (R-Tenn.), Katie Britt (R-Ala.), Kevin Cramer (R-N.D.), and Steve Daines (R-Mont.).
A Path Forward
The SHIP Act requires the U.S. government to impose sanctions on foreign ports and refineries knowingly accepting Iranian oil. The delay in its implementation has raised bipartisan concerns about its effectiveness and the administration’s commitment to enforcing these measures.
As Kennedy and his colleagues push for swifter action, the Biden administration faces mounting pressure to demonstrate its resolve in countering Iran’s influence and ensuring compliance with U.S. sanctions.