In a report released on Thursday, February 8, Bloomberg News agency revealed that the Biden administration is planning to ramp up the enforcement of oil sanctions against the Iranian regime in response to the escalating crisis in the Middle East. The aim is to diminish Tehran’s support for militants operating in the region.
Sources familiar with the matter informed Bloomberg that the White House intends to bolster the enforcement of existing sanctions as the regional crisis worsens, despite acknowledging the potential disruption to global oil markets.
The report highlights that the escalation of the crisis is attributed to Iran regime’s backing of groups such as Hamas, which initiated the conflict with Israel, and the Houthis in Yemen, who have been disrupting world trade by targeting commercial ships. Addressing these issues has become a top priority for the American forces in the region.
The situation in the Middle East intensified last month following an attack linked to Iran that resulted in the deaths of three American soldiers. In response, President Biden ordered strikes on related targets in Iraq and Syria and pledged further action.
One of the challenges faced by the US government in increasing pressure on the Iranian regime is persuading other major oil producers, notably Saudi Arabia, to prevent oil prices from rising. Saudi Arabia, however, rejected Biden’s request for increased oil production in 2022.
Moreover, China, Iran’s main oil buyer, has little incentive to cooperate with Washington in this matter, given its status as the world’s largest oil importer and a top strategic competitor.
A bipartisan group of US lawmakers has urged Biden to utilize existing sanctions against ships, ports, and refineries involved in handling Iranian oil as a retaliatory measure.
According to anonymous sources cited by Bloomberg, options being considered by the White House include targeting ships transporting Iranian crude oil, imposing penalties on countries purchasing it, or facilitating its transportation.
White House National Security Council Spokesperson Adrienne Watson emphasized the US’s commitment to holding Iran accountable for its escalating actions through sanctions enforcement and maritime restrictions.
Watson reiterated that the US will continue its efforts to disrupt Iran’s financing of terrorist elements in the region.
TankerTrackers.com reported that Iran’s crude oil and gas condensate exports averaged around 1.4 million barrels per day last year. A senior US administration official noted that exports could exceed 2.5 million barrels per day without the implementation of current US sanctions, with the possibility of sanctions being tightened or relaxed as necessary.
Last year witnessed signs of sanctions easing as Iranian exports surged amid clandestine diplomacy between Washington and Tehran involving prisoner swaps and frozen assets. Iran’s oil sales to China, a country not subject to US sanctions, reached the highest level in a decade last August.
