The recent attack on Israel by Iran has brought up concerns about tightening sanctions on Iranian oil. Analysts are saying that the US faces challenges in doing so, as rising oil prices and strained relations with China make it difficult to impose strict measures.
Congressman Steve Scalise criticized President Joe Biden for not enforcing current sanctions more strictly, arguing that the leniency has made it easier for Tehran to sell oil and fund terrorist activities. However, former President Donald Trump had reimposed sanctions on Iranian oil in 2018 after withdrawing from the JCPOA nuclear agreement in 2015.
The Biden administration is trying to restore the agreement but has faced challenges in doing so. One of their strategies involves punishing businesses in China, the UAE, and other countries for buying Iranian oil. Washington recently renewed a sanctions regime that allows Iraq to buy energy from Iran, providing Tehran with an additional $10 billion in revenue.
Tensions between Hamas and Israeli forces in the Gaza Strip also contribute to Washington’s efforts to prevent conflict from spreading in the region. However, doubts remain about Biden’s ability to tighten sanctions on Iranian oil exports, which are crucial to the country’s economy. Concerns about the impact on oil prices and potential repercussions on US-China relations are factors influencing decision-making in the Biden administration. Despite affirming that sanctions remain in place, the administration faces challenges in taking strong action against Iran.
The importance of sanctions in influencing Iran’s oil exports presents a complex dilemma for the US government. While there is a desire to hold Iran accountable and prevent further attacks, the implications on oil prices and relations with China pose significant obstacles. Striking a balance between addressing security concerns and economic stability remains a key challenge for the Biden administration in the aftermath of the attack on Israel by Iran.
