U.S. Prepares to Curb Iran’s Malign Activity: New Sanctions on the Horizon
The United States is preparing to impose new sanctions on Iran as part of its ongoing efforts to disrupt its malign activity in the region, according to Treasury Secretary, Janet Yellen. Speaking at a news conference on the sidelines of the International Monetary Fund and World Bank spring meetings, Yellen warned that the measures, expected in the coming days, could focus on reducing Iran’s capacity to export oil. This comes in response to a suspected drone and missile attack launched by Iran against Israel over the weekend – its first direct attack on the country. While Israel claims that it shot down almost all the drones and missiles, the incident has raised concerns about further conflict in the region.
Yellen stressed that all options to disrupt terrorist financing of Iran were “on the table,” but did not provide details on specific measures. However, in prepared remarks, she highlighted the threat posed by Iran’s support for militant groups in Gaza, Lebanon, Yemen, and Iraq, which she said threatened stability in the Middle East and could cause economic spillovers. The U.S. has been using financial sanctions to isolate Iran and disrupt its ability to fund proxy groups and support Russia’s war in Ukraine. Treasury has targeted more than 500 individuals and entities connected to terrorism and terrorist financing by the Iranian regime and its proxies since the start of the Biden administration in January 2021.
One possible area for new sanctions involves reducing Iran’s ability to export oil. The Treasury is enlisting the aid of China, G7 partners, and other major suppliers to erode Iran’s ability to continue to do this and to get the microelectronics needed for its drones. The official also noted that previous sanctions had not led to oil price increases. However, the jump in oil prices has been driven mainly by geopolitical uncertainty. To get other countries to constrain Iran, the Treasury will have to have conversations with all the world’s major oil suppliers, including China and the G7.
Yellen called for urgent action to end Palestinian suffering in Gaza where the population is facing acute food insecurity and displacement. Washington is reportedly continuing to use economic sanctions to pressure Hamas but is emphasizing that the sanctions should not impede life-saving aid. She also noted that Washington is targeting extreme settler violence in the West Bank while working to ensure a functioning banking system there and supporting IMF programs in Jordan and Egypt.
This latest move by the U.S. highlights its continued determination to confront malign actor’s in the region and comes as tensions between Iran and Israel have escalated. While the exact nature of the upcoming sanctions remains unknown, they are expected to target the regime’s ability to export oil, thereby limiting its access to the funds required to support its proxy groups. At the same time, the U.S. is continuing to work towards supporting those affected by conflict in Gaza and the West Bank, demonstrating a multi-faceted approach to tackling complex challenges in the region.
Source article: https://www.usnews.com/news/world/articles/2024-04-16/us-will-use-sanctions-to-disrupt-irans-malign-activity-yellen-says
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