Ahead of the Presidential Election, US Imposes Additional Sanctions on Iran: "Supported Terrorist Groups by Selling Oil"

Allegations of Funding Support by National Oil Company Revolutionary Guards
Differences Between US and Iran on Sanctions Effectiveness

[Asia Economy Reporter Naju-seok] The United States announced sanctions against Iran's Ministry of Petroleum and state-owned oil companies, accusing them of supporting terrorism. This is seen as a declaration of the U.S. government's intention to maintain pressure on Iran.

On the 26th (local time), according to The Wall Street Journal (WSJ), the U.S. Treasury Department announced sanctions targeting Iran's Ministry of Petroleum, state-owned oil companies and their subsidiaries, and Bijan Namdar Zanganeh, Iran's Minister of Petroleum.

Steve Mnuchin, U.S. Secretary of the Treasury
[Photo by AP Yonhap News]

The U.S. Treasury cited the fact that Iran's oil companies have been funding the Quds Force, an elite unit of the Iranian Revolutionary Guard Corps (IRGC), as a reason for the sanctions. The IRGC Quds Force is designated as a terrorist organization by the U.S. and has played a role in supporting pro-Iranian militias across the Middle East.

Steven Mnuchin, U.S. Treasury Secretary, stated, "The Iranian regime has destabilized the region by funding the IRGC Quds Force with revenues earned from oil," adding, "Those who purchase Iranian oil should know they are financing nefarious activities throughout the Middle East."

The timing of these sanctions has drawn attention. Implemented ahead of the U.S. presidential election, these sanctions are viewed as an expression of the U.S. commitment to maintain pressure on Iran regardless of the election outcome. There has been growing hope that if Democratic presidential candidate Joe Biden is elected, the U.S. might ease sanctions through a nuclear agreement with Iran.

However, experts within the U.S. believe that because these sanctions were imposed by counterterrorism authorities, they will be harder to lift compared to other sanctions. Additionally, companies violating these sanctions face not only the stigma of dealing with terrorist-related entities but also the risk of heavier fines, increasing the burden on companies importing crude oil from Iran.

On the other hand, Iran questioned the effectiveness of the U.S. sanctions. Minister Zanganeh, included in the sanctions list, tweeted, "The U.S. policy to reduce Iran's exports to zero has failed," and claimed, "The era of unilateralism is over."

WSJ reported that Iran's Ministry of Petroleum shares a similar view. Given the extensive sanctions already imposed by the U.S. on Iran, they believe additional sanctions will not cause significant further damage.

This content was produced with the assistance of AI translation services.