Iranian flag with stock graph and an oil pump jack miniature model are seen in this illustration taken October 9, 2023. REUTERS/Dado Ruvic
The U.S. House of Representatives passed a bill on Friday with a strong bipartisan majority to enhance sanctions on Iranian oil. The bill, known as the “Stop Harboring Iranian Petroleum (SHIP) Act,” was approved by a vote of 342-69. It aims to impose measures on foreign ports and refineries engaged in processing petroleum exported from Iran in violation of U.S. sanctions.
The U.S. Congress is currently deliberating on various legislative measures to exert pressure on Iran following the October 7 attacks on Israel by Hamas, which resulted in the loss of over 1,400 lives, predominantly civilians. While Hamas has historically received support from Iran, Tehran has denied any involvement in these attacks.
The sponsors of the bill, Representatives Mike Lawler, a Republican, and Jared Moskowitz, a Democrat, emphasized that it sends a clear message to countries such as China and Russia, warning them against assisting Iran in evading sanctions and supporting terrorist funding. The bill’s next steps include passage in the Senate and signing into law by President Joe Biden. A corresponding bill in the Senate is sponsored by Republican Senators Marco Rubio and John Kennedy, along with Democratic Senators Maggie Hassan and Jacky Rosen.
The effectiveness of this legislation, once enacted, remains uncertain. While Congress can pass sanctions legislation, these measures often come with national security waivers, granting presidents discretion in their application. This could potentially allow China to continue importing Iranian oil despite the introduction of new sanctions.
Despite existing U.S. sanctions on Iranian oil linked to its nuclear program, Iran’s crude oil exports have been on the rise. Iran maintains that its nuclear program is solely for peaceful purposes. In September, data from consultancies FGE and Vortexa indicated that Iran’s crude oil exports, standing at approximately 1.5 million barrels per day (bpd), reached their highest levels in over four years, with over 80% of these exports directed towards China.
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