US considering new sanctions on Iranian oil sales to China: WSJ
20 Jul 2021

The United States is weighing new sanctions on Iran’s oil sales to China as a way to pressure Tehran to commit to a nuclear deal, sources familiar with the matter told The Wall Street Journal (WSJ) on Monday.

US negotiators continue to work with European and international partners in Vienna, Austria in an attempt to revive the Joint Comprehensive Plan of Action (JCPOA) – the 2015 agreement that curbs Iran’s nuclear programme in exchange for the lifting of some of the sanctions Tehran faces.

But as those negotiations stall, the US is mulling alternative options to encourage Iran to stay at the negotiating table or up the cost of leaving it, US officials and people familiar with the matter told the WSJ.

One option under consideration would reduce Iran’s growing crude sales to China, the newspaper reported.

“There is not much left to sanction in Iran’s economy,” a US official told the WSJ. “Iran’s oil sales to China is the prize.”

Beijing is Tehran’s main oil client. In the plan under consideration, the US would take aim at Iran’s oil sales to China by targeting shipping networks that help export an estimated one million barrels per day, officials told the WSJ.

But the new plan would only go into effect if nuclear talks fail, those officials said.

The US would aggressively enforce current sanctions already banning dealings with Iran’s oil and shipping sectors through strong enforcement and legal action, according to the WSJ.

With mounting concerns that the effort could have unintended consequences and may even encourage Iran to accelerate its nuclear programme, other options under consideration include a diplomatic campaign to persuade China, India and other major crude-oil buyers to cut imports of the commodity, non-oil trades, debt financing and financial transfers, another official told the WSJ.

Iran’s president-elect, Ebrahim Raisi, who will be inaugurated next month, has said that Tehran will not agree to the nuclear deal without the lifting of US sanctions first.

Read more at Al Jazeera

RiskScreen: Eliminating Financial Crime with Smart Technology

Advance your CPD minutes for this content, by signing up and using the CPD Wallet