Oil sector targeted in expanded US sanctions against Iran
The United States announced the expansion of sanctions targeting Iran’s petroleum and petrochemical sectors, following Tehran’s 1 October attack on Israel. It explained the ‘action intensifies financial pressure on Iran, limiting the regime’s ability to earn critical energy revenues to undermine stability in the region and attack U.S. partners and allies.’
In an 11 October statement, the Treasury Department said: ‘The Secretary of the Treasury, in consultation with the Secretary of State, is identifying the petroleum and petrochemical sectors of the Iranian economy pursuant to section 1(a)(i) of Executive Order (E.O.) 13902, which allows Treasury to target a broader range of activities relating to Iran’s trade in petroleum and petrochemical products.
‘E.O. 13902 provides authority to identify and impose sanctions on key sectors of Iran’s economy to deny the Iranian government financial resources that may be used to fund and support its nuclear program, missile development, terrorism and terrorist proxy networks, and malign regional influence.
‘Pursuant to this determination, the Treasury may impose sanctions on any person determined to operate in the petroleum and petrochemical sectors of the Iranian economy.’
Treasury Secretary Janet Yellen explained, ‘Today’s sanctions target Iranian efforts to channel revenues from its energy industry to finance deadly and disruptive activity – including development of its nuclear program, the proliferation of ballistic missiles and unmanned aerial vehicles, and support to regional terrorist proxies – with dangerous consequences for the region and the world. We will not hesitate to take further action to hold Iran accountable.’
In addition to the expanded sanctions, the Treasury’s Office of Foreign Assets Control (‘OFAC’) designated 10 entities in various jurisdictions, along with identifying 17 vessels as blocked property for their alleged role in facilitating the shipment of Iranian oil and petrochemical products.
