Tag Archives: Iranian oil

Taking Economic Action Against Iran

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On Friday, The Jewish News Syndicate reported that the Trump administration has put sanctions on Iran’s oil shipments. The money from Iranian oil has been used to fund terrorism around the world. Iranian oil paid for the Hamas attack on Israel on October 7, 2023.

The article reports:

The U.S. Treasury Department imposed sanctions on Thursday on an oil smuggling network generating hundreds of millions of dollars for Iran.

Iran’s Armed Forces General Staff used front companies to ship oil and used the revenue to fund terrorist groups, including Hamas, the Houthis and Hezbollah, according to the department.

“The Iranian regime remains focused on leveraging its oil revenues to fund the development of its nuclear program, to produce its deadly ballistic missiles and unmanned aerial vehicles and to support its regional terrorist proxy groups,” stated Scott Bessent, the U.S. treasury secretary. “The United States is committed to aggressively targeting any attempt by Iran to secure funding for these malign activities.”

Thursday’s action is the first round of new sanctions on the Islamic Republic since U.S. President Donald Trump signed an executive order on Wednesday re-imposing a policy of “maximum pressure” on Iran.

The sanctions target part of Iran’s “shadow fleet” of oil tankers and shell companies that help Iran smuggle oil and ultimately sell it to China.

When President Trump left office in 2020, Iran was collapsing financial because of the sanctions the Trump administration had put in place during President Trump’s first term. Unfortunately, one of the first things President Biden did was remove those sanctions. We may have missed a golden opportunity for regime change in Iran. Hopefully, the new sanctions will have the same impact the old sanctions had.

Prepare For Supply Chain Problems

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Remember the supply chain crisis caused by the Covid virus? Remember the problems parents had buying Christmas gifts for their children? We may be headed right back there only for a different reason.

On Sunday I posted an article about terrorism interrupting the flow of shipping through the Red Sea (article here). The article stated that because of a Houthis’ attack on one of their vessels, A.P. Moller-Maersk A/S is ‘pausing’ their ships heading for the southern entrance of the Red Sea.

On Monday, The BBC reported the following:

Oil giant BP has announced it is pausing all shipments of oil through the Red Sea after recent attacks on vessels by Houthi rebels.

The firm blamed the “deteriorating security situation” in the region as Iran-backed Houthis target ships they believe are bound for Israel.

Many freight firms have suspended journeys as the attacks continue.

BP said it would keep its “precautionary pause under ongoing review” and monitor the region.

Analysts suggested that if other large oil firms follow suit, oil prices could rise. Brent crude, the international benchmark foroil prices, increased to $78.44 per barrel.

“Right now it’s unclear how significant the impact will be,” said Gregory Brew, an oil historian and analyst at Eurasia Group.

“Though if more shipping companies divert their traffic, and if the disruption lasts more than a week or two, prices are likely to climb further.”

The Red Sea is one of the world’s most important routes for oil and liquefied natural gas shipments, as well as for consumer goods.

This is an international matter. The world needs to understand that Iran is funding the Houthis. Iran is also funding Hamas. Iran is also funding Hezbollah. There seems to be a pattern here. It’s time to put international sanctions back on Iranian oil and enforce them. One major move that the international community can make to slow down terrorism is to defund Iran. If they are not willing to unite to do that, look behind the scenes to see who benefits from the terrorism.

 

Disturbing News From The Middle East

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Most of the world wants peace in the Middle East. President Trump has been moving in that direction by normalizing relations between Israel and some of its Arab neighbors. However, not everyone in the region is in favor of peace. To some nations, war serves a purpose–it distracts from internal problems and can be a unifying force, it stimulates the economy by creating a demand for planes and weapons, and it often will strengthen the leadership position of whoever is in charge of the country fighting the war.

The United States Naval Institute News (USNI) News reported on Wednesday that two Russian Navy ships were seen in the Mediterranean Sea escorting an Iranian-flagged oil tanker to Syria.

The article reports:

Last week, the Iranian-flagged oil tanker Samah entered the Mediterranean Sea via the Suez Canal. After a few miles, the 900-foot-long ship stopped reporting its position and destination. Evidence suggests the ship sailed to Syria, escorted by two Russian Navy ships, including a destroyer.

Russia’s role in protecting the shipment may change the dynamics in the Eastern Mediterranean. In the past, Iranian tankers sailing to Syria have been intercepted by the U.K. Royal Navy. The Russian Navy escort could be viewed as a precautionary step, raising the political and military risks of any intervention by the Royal Navy or others.

Last July, an Iranian tanker destined for Syria, Adrian Darya-1, was seized by U.K. Royal Marines off Gibraltar. The British accused Iran of supplying Syria with oil in contravention of European Union sanctions. Iran quickly seized a British-flagged tanker in a likely retaliatory move. Eventually, in September, Adrian Darya-1 was released by a local court with the assurance that it would not deliver its oil to Syria – but days later, it transshipped its oil in Syrian waters.

The article concludes:

The Russian Navy has hinted it would be more active in escorting merchant ships in the region. After the Iranian delivery, the Russian Navy has publicized an exercise off Syria, meant to protect “smooth passage of civilian ships.” A simulated attack by a submarine was dealt with by Vice Admiral Kulakov, which may be intended to send a message to allies and potential adversaries alike that Russia will actively prevent any interference with the Iranian shipments.

Russia now maintains a permanent squadron in the Mediterranean, based in Tartus, Syria. This includes submarines and large warships. If Moscow decides the Iran-Syria oil run is now a regular mission for the Russian Navy, it’s set to complicate enforcement of international sanctions which could otherwise shut down one of the Syrian regime’s vital lifelines.

Russia has always wanted a ‘warm water port.’ It looks as if they now have one.