Lafayette Reporter

Senator John Kennedy of Louisiana, alongside Senator Tim Scott and other colleagues, has expressed concerns to Treasury Secretary Janet Yellen about the Biden administration's delay in implementing sanctions on Iranian oil. This follows President Biden's signing of the Stop Harboring Iranian Petroleum (SHIP) Act into law in April, which mandates sanctions on foreign ports and refineries that process petroleum from Iran.

In a letter to Secretary Yellen, the senators stated: "We are writing to express ongoing concerns regarding the implementation and enforcement of sanctions on Iran’s oil sector, particularly as they relate to mandates established under the Stop Harboring Iranian Petroleum (SHIP) Act, which was signed into law in April of this year."

The lawmakers emphasized that Congress views Iran's oil sector as crucial for sanctions due to its role in financing regional terrorism and nuclear development. They highlighted ongoing delays in enforcing the SHIP Act as problematic.

The senators noted that lax enforcement has allowed countries, especially in Southeast Asia, to ignore U.S. sanctions and continue trading Iranian crude with China. They pointed out Malaysia's oil exports to China exceed its production capacity, suggesting involvement in Iranian oil trade. "To address these deficiencies, it is critical that Treasury deploys all available enforcement tools and fully engages in monitoring and sanctioning illicit oil transactions involving Iran," they added.

They also mentioned United Against Nuclear Iran (UANI), which tracks vessels transporting Iranian oil through initiatives like its tanker tracker and 'Ghost Armada' analysis. The senators urged the Treasury Department to use additional intelligence sources for monitoring these activities.

Furthermore, they requested comprehensive assessments from the Treasury on foreign financial institutions involved with Iranian oil exports and an evaluation of vessels listed by UANI for potential sanctions criteria. They also called for briefings from Treasury officials to enhance sanctions measures and an updated advisory from the Financial Crimes Enforcement Network by December 20th.

The letter was co-signed by Senators Mike Crapo, Mike Rounds, Thom Tillis, Bill Hagerty, Katie Britt, Kevin Cramer, and Steve Daines.