Understanding Current US Sanctions on Iran and the Potential for Further Imposition

US Treasury Secretary Janet Yellen announced on Tuesday that new sanctions on Tehran, particularly affecting its oil exporting capacity, will be implemented within days. These sanctions come as Congressional Republicans also contemplate a series of bills targeting Iran.

According to the Congressional Research Service (CRS), US sanctions on Iran are considered to be the most extensive and comprehensive set of sanctions that the United States maintains on any country. This is in part due to the reinstatement of sanctions by former President Donald Trump, following the withdrawal from the international deal on Tehran’s nuclear program in 2018.

While discussing the potential impact of further sanctions, experts highlighted the diminishing economic pressure due to the plethora of sanctions already in place. As part of the potential measures, legislation is being considered to enhance congressional oversight of sanctions waivers, tighten restrictions on the export of US goods and technology to Iran, and ensure that humanitarian exemptions do not aid in terrorism or proliferation of weapons of mass destruction.

The House recently passed a bill called the Iran-China Energy Sanctions Act, which aims to expand sanctions on Iran by assessing whether Chinese financial institutions participate in transactions on Iranian oil. The bill also proposed banning US financial institutions from accommodating Chinese entities that engage in such deals, although its fate in the Senate remains uncertain.

In addition to the legislative developments, the Biden administration has been ramping up its sanctions on individuals and entities with ties to Iran. The current US sanctions on Iran largely target its nuclear capabilities, energy and defense sectors, government officials, banks, and other aspects of its economy.

This has included sanctions on various companies and financial institutions linked to Iran’s nuclear program, the National Iranian Oil Company and Ministry of Petroleum, and entities involved in the trade of Iranian petrochemicals and petroleum. Moreover, the US has imposed sanctions on Iran’s Revolutionary Guard Corps, its overseas Quds Force, the Ministry of Defense and Armed Forces Logistics, and individuals associated with them.

Additionally, Iranian government officials, including President Ebrahim Raisi, have been subjected to targeted sanctions.