US Imposes Large-Scale Sanctions a Day After Iran Seizes Korean Vessel

Iran and China Among Metal-Related Companies Blacklisted
Finance Ministry: "Blocking Revenue Flow to Iranian Regime"
Biden Likely to Narrow Future Response Scope

[Asia Economy New York=Correspondent Baek Jong-min] The day after Iran detained a South Korean-flagged vessel, the United States imposed additional economic sanctions on Iran. As outgoing President Trump continues to pressure Iran and tensions between the two sides deepen, the calculations for President-elect Joe Biden are expected to become more complicated.

On the 4th, the Korean-flagged vessel "Hanguk Chemi" being seized by the Iranian Revolutionary Guard Corps. On the right is the speedboat used by the Iranian Revolutionary Guard Corps. The photo shows CCTV footage at the time of the seizure. [Image source=Yonhap News]

On the 5th (local time), the U.S. Treasury Department blacklisted 15 Iranian entities, including 12 steel and metal manufacturers and 3 overseas sales agencies. One Chinese company that supplied steel materials to Iran was also sanctioned.

According to the Treasury Department, Kaifeng Pingmei New Carbon Material Technology (KFCC), a carbon material specialist headquartered in China, supplied thousands of metric tons (mt) of carbon materials, a key raw material for steel production, to Iranian steel companies from December 2019 to June last year.

The 12 Iranian companies blacklisted include Middle East Mines and Mineral Industries Development Holding Company (MIDHCO), and three of MIDHCO’s subsidiaries in Germany, China, and the United Kingdom were also sanctioned.

The Treasury Department pointed out that Iran’s metal economy sector is a major revenue source for the Iranian regime. It explained that while it serves as a source of income for corrupt leaders, it also funds various criminal activities including the proliferation of weapons of mass destruction, support for foreign terrorist organizations, and human rights abuses.

In a statement, Treasury Secretary Steven Mnuchin said, "The Trump administration is working to cut off revenue flowing to the Iranian regime as it continues to support terrorist groups, back oppressive regimes, and pursue weapons of mass destruction."

Secretary of State Mike Pompeo also warned in a separate statement, "The United States will continue to impose persistent and vigorous sanctions on the Iranian regime, those who evade sanctions, and countries that help the Iranian government secure funding."

The sanctions came immediately after tensions between the U.S. and Iran escalated the day before. The previous day, Iran seized the South Korean chemical tanker 'Hanguk Chemi' and announced it would begin increasing uranium enrichment levels to 20%. In response, the U.S. demanded the immediate release of the seized vessel and strongly condemned the increase in uranium enrichment levels.

As tensions between the U.S. and Iran escalate, U.S. media outlets have expressed concerns that it will be difficult for President-elect Biden to fulfill his promise to restore the Iran nuclear deal (JCPOA - Joint Comprehensive Plan of Action), from which the Trump administration withdrew after taking office.

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