Tightening the Noose on Iran: Congressional Proposal Meets Resistance

Strategic Insights -

A proposed bill by Representative Peter King to strengthen trade sanctions against Iran, incorporating legislation from Senator Alfonse D'Amato that bans US trading with foreign companies dealing with Iran, is unlikely to gain traction in the House. The bill would require all trading partners, including oil industry customers, to choose between doing business with Iran or the US. President Clinton's May 8 executive order, which imposed unilateral sanctions, has already forced US oil companies to end contracts to lift Iranian oil within 30 days. The administration plans to seek multilateral support during the G-7 Summit in June, but congressional advocates criticize the order as too lenient.

Key Takeaways:

  • Representative Peter King's bill, combining his own proposals and Senator Alfonse D'Amato's legislation, aims to ban US trading with foreign companies dealing with Iran.
  • The bill would force all trading partners to decide whether to do business with Iran, impacting the oil industry significantly.
  • President Clinton's May 8 executive order imposed unilateral sanctions, which forced US oil companies to sever all contracts to lift Iranian oil within 30 days.
  • Congressional advocates of stricter sanctions criticize the executive order as too lenient, advocating for a more proactive approach against Iran.
  • Senator D'Amato's bill (S.277) could disallow crude swaps in Central Asia, forcing oil companies to route oil through Russia or regions with civil strife or war.
  • The bill could also affect refined crude products, potentially subjecting them to the embargo due to the production or extraction of Iranian crude.

Statistics:

  • 30 days: The timeframe given to US oil companies to sever all contracts to lift Iranian oil after President Clinton's executive order.
  • 1: The number of House member considering offering the bill as an amendment to the State Department authorization bill.
  • 2: The number of bills among which King's bill might be offered, including Representative King's bill, and Senator D'Amato's bill (S.277).

Sources:

  • Representative Peter King's press secretary, Dan Michaelis, as quoted in the article.
  • An oil industry source closely following the issue.
  • Senator Alfonse D'Amato's spokesman.
  • A Washington lawyer following Iran sanctions for the oil industry.