Iran Sanctions - Foreign Press Centers

Iran Sanctions
consideration—either in a multilateral framework or for U.S. unilateral action targeting foreign
firms and entities.
Comprehensive Oil Embargo
Most experts believe that the most effective sanction would be a mandated, worldwide embargo
on the purchase of Iranian crude oil. Despite the imposition of an embargo on Iranian oil
purchases by the EU, there are no indications that a comprehensive worldwide embargo is to be
proposed at the United Nations in the near term or that doing so would achieve consensus. A U.S.
unilateral move to compel others to cease purchasing Iranian oil does not appear under
consideration, although the sanctions against Iran’s Central Bank approaches that position. Short
of imposing a military quarantine on Iran, the United States does not have the ability, by itself, to
prevent Iran from exporting oil.
In the 111 th Congress, Representative Sherman introduced H.R. 6296, which, in Section 202,
would amend ISA to make sanctionable “long term agreements” to buy oil from Iran—
agreements that would involve large, up-front payments to Iran for purchases of oil over a long
period of time. A provision of that bill would have extended ISA sanctionability to any energy
project conducted with NIOC, anywhere in the world. An amended version of the bill was
introduced in the 112 th Congress (H.R. 1655, introduced April 15, 2011). Other pending
provisions of H.R. 1905 and S. 1048 would sanction oil related transactions with Iran if those
transactions involve the IRGC.
Iran “Oil-Free Zone”
As noted above, a voluntary ban on importing Iranian oil has been imposed by the EU. Prior to
the EU move, there was discussion of forcing a similar result by closing the loophole in the U.S.
trade ban under which Iranian crude oil, when mixed with other countries’ oils at foreign
refineries in Europe and elsewhere, can be imported as refined product. That would likely cause
EU and other major refiners to stop buying Iranian oil. The basis of the proposal, outlined by a
think-tank called the Foundation of Defense of Democracies, is that restricting Iranian oil to use
by only a limited number of refineries would force down the price received by Iran for its oil,
although without raising the world price of oil significantly, if at all. Some argue this concept has
been overtaken by events because of the EU oil embargo, while others say the step still has value
in making sure the EU oil embargo on Iran is not easily lifted or modified.
Other Possibilities
Other possible international steps would likely have less of an adverse economic effect on the
countries imposing those sanctions on Iran but would, if enacted in a U.N. Security Council
resolution, be binding on U.N. member states and presumably have greater effect than would
such steps by the United States alone or in concert with its allies. However, aspects of many of
these ideas are now so widely adopted by U.S. partner countries so as to possible moot their
inclusion in any new U.N. Resolution.
• Mandating Reductions in Diplomatic Exchanges with Iran or Prohibiting Travel
by Iranian Officials. Some have suggested a worldwide ban on travel to Iranian
civilian officials, such as those involved in suppressing democracy activists.
Some have called on countries to reduce their diplomatic presence in Iran, or to
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