Renewed conflict in the Middle East prompts calls for additional sanctions on Iran

Tue 16 Apr 2024
Posted by: Phil Adnett
Trade News
Middleeast

The latest round of conflict between Iran and Israel has seen politicians on both sides of the Atlantic pushing for their governments to impose fresh sanctions against Tehran.

On Saturday (13 April), Iran launched an hours-long attack on Israel, following a strike on an Iranian embassy in Syria that was reportedly carried out by Israeli forces. Israel has not confirmed it was behind the consulate attack.

Diplomatic moves

Israeli foreign minister, Israel Katz, said he is pushing for more sanctions as part of a “diplomatic offensive” he was leading against Iran.

He added:

“This morning I sent letters to 32 countries and spoke with dozens of foreign ministers and leading figures around the world calling for sanctions to be imposed on the Iranian missile project and that the Islamic Revolutionary Guard Corps (IRGC) be declared a terrorist organisation”

The list of countries reportedly includes the UK, Australia and Japan, as well as most EU nations.

More sanctions possible

UK foreign secretary, David Cameron, told the BBC that the government was considering all its options, including sanctions:

“We already have 400 sanctions on Iran. We put in place a whole new sanctions regime at the end of last year, which is proving very effective.”

Former UK home secretary Suella Braverman wrote a comment article yesterday (15 April) in the Telegraph calling on the UK to add the IRGC to the list of prescribed organisations.

Shadow defence secretary John Healey and former Conservative leader Iain Duncan Smith have also urged prime minister Rishi Sunak to ban the group.

Corps

The corps, which is a major military and economic force inside Iran, is already regarded as a terrorist organisation by the US, Sweden and Saudi Arabia.

The UK has previously imposed several rounds of sanctions on various Iranian entities, but has stopped short of designating the IRGC as a “terrorist group”, which would impose additional restrictions on the quasi-military group.

Justice minister Laura Farris said that this was currently not on the agenda to maintain diplomatic relations with Iran while Downing Street reportedly said it would resist any moves to have the group officially designated as a terrorist organisation.

Biden under pressure

US president Joe Biden is also under growing domestic pressure to impose more sanctions against Iran after Saturday’s attack.

“President Biden must enforce sanctions on Iran now,” said Republican senator Joni Ernst.

Ernst said he was introducing a bipartisan bill that would target Iran’s oil exports. Her legislation would purportedly allow the US to seize Iranian oil tankers.

Her draft Iranian Sanctions Enforcement Act, co-sponsored with Democratic senator Richard Blumenthal, was announced in late 2023 and phrased as a way to enforce US sanctions policy.

In the House of Representatives, a separate Iran-China Energy Sanctions Act, passed by 383-11 yesterday.

According to a summary from Congress’ website, the draft bill would require the president to “periodically determine whether any Chinese financial institution has engaged in the purchase of petroleum or petroleum products from Iran. US financial institutions shall not open or maintain certain accounts with such Chinese financial institutions.”

EU response

The FT reports that officials in European capitals are discussing a fresh round of sanctions against Tehran, while also maintaining support for Israel.

Publicly, the EU has condemned the attack and called on “all parties to exercise utmost restraint”, while reaffirming its “commitment to the security of Israel.”

EU foreign policy chief Josep Borrell told Spanish radio station Onda Cero that he wanted to have “better relations with Iran”, calling it an important regional actor, and saying that there were ongoing discussions between the bloc and Tehran.

Sanctions on Israel

Prior to Saturday’s attack, Israel was facing the prospect of being sanctioned over its conduct in Gaza, which has seen over 30,000 Palestinian civilians reported killed.

In total, Turkey is halting 54 types of products from being sent to Israel, including iron and steel products and jet fuel, according to Al Jazeera.

Lord Cameron said the UK wouldn’t suspend arms exports to Israel, according to the BBC.

Turkey imposed curbs on exports to Israel until a ceasefire is declared, while French foreign minister Stephane Sejourne suggested that sanctions could be imposed on Israel “to let humanitarian aid cross check points.”