The House Foreign Affairs Committee unanimously passed the Nuclear Iran Prevention Act, which would extend existing sanctions to the auto and mining sectors and allow the U.S. president to subject other Iranian industries, such as engineering, to similar restrictions.
Today’s U.S. sanctions focus on Iran’s finance and energy sectors, notably its oil exports. Six countries and territories — China, India, Japan, South Korea, Taiwan and Turkey — still import Iranian oil, but they have reduced their imports since 2012, with Washington granting them “exceptions.”
The new law, should it pass the House and Senate and get signed by President Barack Obama, would require further reduction of one million barrels per day over the next year as a condition of the exemption, amounting to a virtual embargo on Iran’s crude exports.
“Now is the time to snap Tehran’s Achilles’ heel,” the committee’s chairman, Republican Ed Royce, said after the vote.
“Simply put, without oil revenue there is no cash for atomic weapons or Hizbullah.”
The measure would also close a loophole in sanctions which the European Union imposed on Iran’s foreign currency reserves by punishing any foreign institution that serves as an intermediary in facilitating currency conversions for Tehran.
“Today’s bipartisan passage of the strongest-ever sanctions leveled at Iran’s nuclear weapons program should send a loud and clear message to Tehran: give up your nuclear weapons program now, or face uncompromising pressure from the United States Congress,” said top committee Democrat Eliot Engel.
The currency penalty could land a severe financial blow against Iran, which holds an estimated $30 billion in reserves outside of Europe, mostly in euros, according to Mark Dubowitz, head of the Foundation for Defense of Democracies.
The goal of the new sanctions is to “cut Iran’s economic lifeline, which is oil export revenue,” and target foreign reserves to the point it will “bring the regime to the brink of economic collapse,” Dubowitz told Agence France Presse.
The bill is likely to be adopted by the full House, then considered by the Senate as soon as in the next few months.