US Should Sanction More Chinese Refineries That Buy Iranian Oil, House Panel Hears
The Treasury Department’s recent sanctioning of a Chinese oil refinery for buying and refining Iranian crude (see 2503200014) was a "great first step" but should be expanded to other refineries to ensure Tehran's energy revenue is significantly reduced, a researcher told a congressional panel April 1.
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Claire Jungman, chief of staff at United Against Nuclear Iran, said that if only the one refinery is sanctioned, the impact will be minimal because Iran will simply move its oil to other refineries. She believes a comprehensive approach would be more effective.
“We need to continue the pressure, we need to continue the designations on the refineries, and it shouldn’t be piecemeal,” Jungman testified before the House Foreign Affairs Committee. “It needs to all happen at once in order to really cut the lifeline.”
Jungman also recommended that the U.S. finish sanctioning Iran’s fleet of “ghost” tankers, in coordination with allies, and sanction those that provide services to those vessels, including flag registries, insurers, ports, ship management companies and classification societies that provide safety certificates.
“Washington should similarly not hesitate to sanction international commodity traders or banks if they knowingly facilitate Iranian oil trades,” she said. “The goal should be to make Iran’s oil so toxic commercially that even clandestine buyers retreat. While zero exports may be unrealistic as long as some countries remain defiant, the U.S. should pursue the past policy objective of getting as close to zero as possible.”
Jungman also would sanction cryptocurrency mining operations that enable Iran to evade sanctions. Another area she would scrutinize is the use of Western technology in Iran’s ghost vessels. "Every ship essentially has some Western component on it," she said. "That's an area that could be looked at" more closely.
While Iran’s oil exports surged over the past few years, they dipped in late 2024, which Jungman attributed to new U.S. sanctions on nearly 50 tankers and the “anticipation of a tougher U.S. sanctions posture after that year’s elections.”
Committee members noted that Congress passed several Iran sanctions laws last year, including the Stop Harboring Iranian Petroleum (SHIP) Act, which requires sanctions on foreign ports and refineries that knowingly process Iranian oil, and the Iran-China Energy Sanctions Act, which requires sanctions on Chinese financial institutions that process transactions involving Iranian oil (see 2404240043). Lawmakers have proposed more bills this year, including the Enhanced Iran Sanctions Act, which would sanction the "logistical chain" of foreign entities that support Iran’s illicit oil sales (see 2502130044).