On April 20th, the U.S. House of Representatives overwhelmingly approved a foreign aid package that included a significant tightening of sanctions against the Iranian regime. The bill, titled the “21st Century Peace Through Strength Act, (H.R. 8038),” passed with a vote of 360 to 58, demonstrating strong bipartisan support for a more assertive stance towards the Iranian regime.
Comprehensive Sanctions Package
This legislation represents the most comprehensive set of sanctions imposed on Iran’s regime by the U.S. Congress in recent years. It incorporates several key measures championed by Representative Michael McCaul, Chair of the House Foreign Affairs Committee. Unveiling the package last week, McCaul emphasized the need for fundamental changes in policy to counter the generational threat posed by the Iranian regime.
Key Components of the Bill
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“Mahsa Law” Reinstatement: The package includes the “Mahsa Law,” which mandates sanctions against Iranian regime officials responsible for human rights abuses. This provision, originally passed by the House in September 2023, was previously stalled in the Senate Foreign Relations Committee. Notably, the law targets high-ranking regime officials, including Supreme Leader Ali Khamenei and President Ebrahim Raisi. Additionally, it requires the U.S. government to submit regular reports detailing human rights violations committed by these individuals and their associated entities.
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Expanded Oil Sanctions: The bill significantly expands existing U.S. sanctions against Iranian regime oil exports. The “SHIP ACT” targets foreign entities – ports, ships, and refineries – that knowingly facilitate the transportation, transfer, trading, or processing of Iranian regime crude oil and other petroleum products. These sanctions go beyond primary restrictions, including “secondary sanctions” that penalize transactions involving Iranian oil purchases, even if they involve Chinese financial institutions.
- A summary of proposed sanctions legislation reveals that around 80% of Iran’s daily oil exports, roughly 1.5 million barrels, are directed to independent Chinese refineries, often referred to as ‘teapots.’
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Sanctions Duration and Impact: News outlets like Reuters report that these sanctions will be subject to yearly reviews and will remain in effect until 2029. Experts anticipate the measures to further disrupt Iranian regime oil exports. The Washington Post highlights the potential for imposing sanctions on Chinese companies involved in Iranian regime oil imports, which have been a critical source of revenue for this regime.
Next Steps: Senate Approval and Implementation
The House-approved package now moves to the Senate for consideration. If passed and signed by US President Biden, these sanctions will become law, marking a significant escalation in U.S. pressure on the Iranian regime. The potential economic impact on the Iranian regime remains the key point to watch in the coming weeks.
