The United States has recently imposed sanctions on seven companies and two tankers engaged in the Iranian petrochemical and petroleum products trade. This action is part of a larger strategy to exert pressure on Iran as nuclear negotiations with Tehran continue. Secretary of State Marco Rubio emphasized the commitment to diminishing Iran’s illegal oil and petrochemical exports, particularly those going to China, as part of the broader maximum pressure campaign. The sanctions reflect the US government’s determination to disrupt various facets of Iran’s energy trade, according to Rachel Ziemba, a senior advisor at Horizon Engage.
This is not the first instance of targeting Iran’s petrochemical sector, but it is notable for sanctioning a small Turkish buyer, an early move against non-Chinese entities. According to Ziemba, while this may make buyers in Turkey or the UAE more cautious, the combination of discounts and illicit trade is likely to keep the flow of trade going, albeit after a brief decline. Moreover, these sanctions align with previous measures, such as those targeting Iran’s liquefied petroleum gas (LPG) trade. Ellen Wald from Transversal Consulting stated that the tightening of sanctions, coupled with ongoing negotiations, demonstrates the seriousness of the US in diminishing Iran’s income sources.
The persistence of Iran in nuclear talks indicates the regime’s urgent need for a successful negotiation to alleviate mounting pressure, as noted by Alex Vatanka from the Middle East Institute. The new sanctions specifically target four sellers and one Turkish buyer that have generated significant revenue for Iran. The sanctions also involve a marine management company and two tanker vessels implicated in transporting petroleum products. In addition, an Iran-based cargo inspection firm has been sanctioned for its role in facilitating the shipment of these products, thereby minimizing risks for those violating sanctions.