U.S. Senators Katie Britt, Tim Scott Lead Banking Republicans in Pressing Biden Administration on Sanctions Enforcement on Iran’s Oil Sector

WASHINGTON, D.C., December 6, 2024 – U.S. Senator Katie Britt (R-Ala.), a member of the Senate Committee on Banking, Housing, and Urban Affairs, Ranking Member Tim Scott (R-S.C.), and six of their Senate Republican colleagues sent a letter to U.S. Secretary of the Treasury Janet Yellen raising concerns with the delayed implementation and enforcement of sanctions on Iran’s oil sector.

The Senators urged the Treasury Department to deploy all available sanctions enforcement tools to monitor and sanction illicit oil transactions involving Iran and to provide detailed information regarding the administration’s efforts to do so. 

In the letter, the Senators wrote, “Congress has consistently identified Iran’s oil sector as a critical area for sanctions due to its significant role in financing destabilizing regional terrorism and nuclear development. Unfortunately, delays in fully implementing the SHIP Act remain a concern, as does the need for increased sanctions enforcement.”

The letter continued, “The recent determination on October 11th to expand Executive Order 13902 to persons supporting Iran’s petroleum or petrochemical sectors and the subsequent action on December 3rd are encouraging steps, but now your Department must continue to follow through with rigorous enforcement action. Lax sanctions enforcement has enabled certain nations, particularly in Southeast Asia, to openly disregard U.S. sanctions and sell Iranian crude to China. For example, trade data show that Malaysia is exporting oil to China in excess of its own production capacity, a clear indication of 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.”

The letter also demands the Treasury Department answer for the following no later than December 20, 2024:

1. An assessment of all vessels listed by UANI in its Tanker Tracker and its Ghost Armada to determine whether they meet the criteria for sanctions under E.O. 13902 as entities operating in Iran’s petroleum and petrochemical sectors.   
2. A comprehensive assessment of all foreign financial institutions facilitating Iranian oil exports.
3. A briefing on Treasury’s engagements with foreign governments to improve sanctions enforcement on Iranian oil exports.
4. A classified briefing on Treasury’s utilization of intelligence community resources to effectively monitor Iranian oil exports and the associated financial networks.
5. An updated Financial Crimes Enforcement Network (FinCEN) advisory to financial institutions alerting them of recent tactics and emerging trends in sanctions evasion by Iran and its oil buyers.

To read the full letter, click here.

Banking Committee Senators Mike Crapo (R-Idaho), Mike Rounds (R-S.D.), Thom Tillis (R-N.C.), Bill Hagerty (R-Tenn.), Kevin Cramer (R-N.D.), and Steve Daines (R-Mont.) also signed the letter.

Background:

The letter follows Senators Britt and Scott’s request in April for a briefing from the Administration on its Iran strategy, and answers to detailed questions regarding the Administration’s actions.

Senator Britt has been an outspoken and strong supporter of Israel and the importance of reimposing bone crushing sanctions to terminate Iran’s terror network and prevent their ability to fund terrorist proxy groups like Hamas and Hezbollah.

In October of 2023, Senator Britt led a Senate Committee on Banking, Housing, and Urban Affairs hearing where she led questioning on enforcement actions the U.S. can undertake to ensure maximum pressure is exerted on Iran and their financial networks that fund terrorist groups like Hamas and Hezbollah. Senator Britt additionally outlined the Biden Administration’s inadequate usage of the existing tools at its disposal to financially constrain Iran, which has profited nearly $80 billion from oil sales since President Biden took office.

Senator Britt continues to be a proponent of strengthening sanctions on Iran to cut off its financial resources. In December of 2023, she led 30 of her Senate Republican colleagues in sending a letter to the Biden Administration urging the Treasury Department to enforce existing sanctions on Iranian steel.

In addition to Senator Rubio’s Stop Harboring Iranian Petroleum (SHIP) Act, Senator Britt is a cosponsor of Senator Tim Scott’s Solidify Iran Sanctions Act and Revoke Iranian Funding Act of 2023; Senator Hagerty’s (R-Tenn.) Iran Sanctions Relief Review Act (ISRRA); Senator Joni Ernst’s (R-Iowa)PUNISH Act of 2023; and Senator Jim Risch’s (R-Idaho) End Iranian Terrorism Act of 2024.

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