U.S. Expands Sanctions on Iran Oil Sector Over Israel Attack

The US broadened the scope of its sanctions on Iran’s oil and gas sectors in response to a ballistic-missile attack on Israel, ramping up economic pressure on Tehran ahead of Israeli retaliation that’s expected any day.

Under the action announced Friday, the Treasury Department invoked a Trump administration-era executive order that allowed for sanctions on any area of the Iranian economy to deny it funding to finance malign activity. Friday’s move essentially declares the country’s petroleum and petrochemical sector off-limits, allowing for sanctions on anyone linked to it.

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“I see this as a modest escalation and broadening of scope but not yet a game-changer,” Rachel Ziemba, a senior fellow at the Center for a New American Security said in a text message. “By threatening to do more, I think they hope Chinese buyers will become more wary. I’m not convinced yet given the deep illicit nature of payments.”

The vast majority of Iran’s oil exports go to China, which has shown little willingness to abide by US sanctions.

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