Press releases

MADISONVILLE, La. – Sen. John Kennedy (R-La.), a member of the Senate Banking Committee, today joined Sen. Tim Scott (R-S.C.) and colleagues in raising concerns to Treasury Secretary Janet Yellen regarding the Biden administration’s delay in implementing and enforcing sanctions on Iranian oil. 

President Biden signed the senators’ Stop Harboring Iranian Petroleum (SHIP) Act into law in April. However, the administration has not implemented the bill, which includes imposing sanctions on foreign ports and refineries that knowingly accept and refine petroleum products from Iran. 

“We are writing to express ongoing concerns regarding the implementation and enforcement of sanctions on Iran’s oil sector, particularly as they relate to mandates established under the Stop Harboring Iranian Petroleum (SHIP) Act, which was signed into law in April of this year. Congress has consistently identified Iran's oil sector as a critical area for sanctions due to its significant role in financing destabilizing regional terrorism and nuclear development. Unfortunately, delays in fully implementing the SHIP Act remain a concern, as does the need for increased sanctions enforcement,” the senators wrote. 

“Lax sanctions enforcement has enabled certain nations, particularly in Southeast Asia, to openly disregard U.S. sanctions and sell Iranian crude to China. For example, trade data show that Malaysia is exporting oil to China in excess of its own production capacity, a clear indication of involvement in Iranian oil trade. To address these deficiencies, it is critical that Treasury deploys all available enforcement tools and fully engages in monitoring and sanctioning illicit oil transactions involving Iran,” they continued.

“Iran’s illicit oil exporting tactics are well known. For example, United Against Nuclear Iran (UANI) provides valuable public data, such as through its tanker tracker and ‘Ghost Armada’ analysis, monitoring vessels moving Iranian oil, especially to and from Kharg Island. Given the capabilities of the United States Government, we are confident that Treasury has access to additional intelligence sources to further these efforts,” they concluded.

The senators are demanding that the Treasury Department provide comprehensive assessments of all foreign financial institutions facilitating Iranian oil exports and of all vessels listed by UANI in its Tanker Tracker and its Ghost Armada to determine whether they meet the criteria for sanctions.

In addition, the lawmakers are requesting briefings from Treasury to improve sanctions as well as an up-to-date Financial Crimes Enforcement Network (FinCEN) advisory to financial institutions regarding recent tactics and trends in sanctions evasion by Iran by Dec. 20, 2024.

Sens. Mike Crapo (R-Idaho), Mike Rounds (R-S.D.), Thom Tillis (R-N.C.), Bill Hagerty (R-Tenn.), Katie Britt (R-Ala.), Kevin Cramer (R-N.D.) and Steve Daines (R-Mont.) also signed the letter.

The full letter is available here.