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The United States is discussing imposing new sanctions on Iranian oil

April 17, 2024

In the wake of the latest Iranian attack on Israel, calls are mounting in the United States for new sanctions on Tehran, and congressional leaders are discussing a bill that would ban the import of Iranian oil, while the House of Representatives has already approved separate legislation expanding secondary sanctions against Iran.

The “Iranian Oil Import Ban” bill (No.: S. 1829) has been submitted to Congress, and would expand the scope of sanctions against entities that ship or process Iranian crude oil. The bill, introduced by Florida Republican Senator Marco Rubio, aims to Imposing sanctions on Iranian oil refineries and entities that illicitly trade Iranian oil through tanker-to-tanker shipments.

The US House of Representatives also approved separate legislation (HR 3774) by an overwhelming majority last November, expanding secondary sanctions against Iran to include all transactions between Chinese financial institutions and sanctioned Iranian banks, which are used to purchase oil and petroleum products.

It is estimated that energy sanctions legislation between Iran and China could increase crude oil prices by up to $8.40 per barrel, or the equivalent of 20 cents per gallon of gasoline, if passed and enforced.

Therefore, recent developments show the United States’ determination to take tough steps against Iran after the attack on Israel, and the ongoing discussions about new sanctions indicate that the United States is seeking to put pressure on Iran and change its behavior.