US Imposes New Sanctions on Iran’s Oil Shipping to China
New Sanctions Aim to Boost Pressure on Tehran
The US Treasury has imposed new sanctions on individuals and tankers helping to ship millions of barrels of Iranian crude oil per year to China, in an incremental move to boost pressure on Tehran. The sanctions target individuals and companies in countries including China, India, and the UAE.
Designated Entities and Individuals
The Treasury designated Iranian national Arash Lavian, who the US said helped support Sepehr Energy, a front company of Iran’s armed forces. Additionally, Marshal Ship Management Private Limited, Young Folks International Trading Co and Limited, and Lucky Ocean Shipping Limited were designated for operating in Iran’s petroleum sector.
Sanctioned Tankers
The US imposed blocking sanctions on the Panama-flagged CH Billion tanker and the Hong Kong-flagged Star Forest tanker for their role in shipping Iranian oil to China. The tankers "onboarded" Iranian crude from storage in China as part of a scheme involving Iran’s military, which stands to profit from the sale of the oil.
Impact of Sanctions
The sanctions block access of the individuals and entities to any of their assets in the US and prohibit US foreign assistance. The move is seen as a tactic to pressure Iran, but experts argue it is not a strategy to drive down oil exports to zero.
Analysis
Jeremy Paner, a sanctions lawyer, said the move was a "tactic, not a strategy" in Trump’s desire to greatly reduce oil exports. Paner argued that the sanctions did not target banks in China that allow energy transactions, which could have had a greater impact.
Fernando Ferreira, the head of geopolitical risk at Rapidan Energy Group, said the sanctions were "an opening shot against China and Iran, designed to put Beijing on notice without disrupting backchannel discussions to explore the potential for a nuclear deal."
Conclusion
The US has taken another step to pressure Iran, but it remains to be seen whether these sanctions will be effective in achieving the goal of reducing oil exports to zero. The move highlights the ongoing tension between the US and Iran, and the need for diplomatic efforts to resolve the nuclear issue.
FAQs
Q: What is the purpose of the new sanctions?
A: The sanctions aim to boost pressure on Tehran and reduce Iran’s ability to export oil.
Q: Who is affected by the sanctions?
A: The sanctions target individuals and companies in countries including China, India, and the UAE.
Q: What is the impact of the sanctions?
A: The sanctions block access of the individuals and entities to any of their assets in the US and prohibit US foreign assistance.
Q: Is this a new strategy for the US to pressure Iran?
A: No, experts argue that this move is a tactic and not a strategy to drive down oil exports to zero.