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Testing Biden's Iran Policy: The Iran Sanctions Enforcement Act Explained

Iran’s religious government celebrated the 45th anniversary of the islamic Revolution in february. It took place in 1979. This revolution toppled the Pahlavi monarchy and established a strict religious government in its place. This moment was very prideful for the Iranian government. Different Iranian officials gave speeches and statements with a confident tone. According to Iranian President Ebrahim Raisi February 11: “We see that the system of the Islamic Republic continues to advance with authority and does not recognize any obstacles in its path.”

If we talk about Iran’s economy then it is much stronger as compared to a few years ago. According to some investigation, Iran has made $90 billion from selling oil illegally to countries like China and India. This selling step has helped the government to refill its empty treasury. 

In the region, Iran feels bolder because Washington hasn’t taken strong action against its aggressive moves, both against U.S. allies like Israel and through proxy groups targeting American interests across the Middle East.

Inside Iran, government officials, who were recently struggling with ongoing protests, have cracked down even harder on dissent. They have started a national campaign to enforce stricter rules on women’s clothing and behavior.

From day one, the Biden administration made reversing Trump’s “maximum pressure” policy on Iran a top priority. This policy had reduced Iran’s financial reserves by over 95%, down to just $4 billion.

Joe Biden and President Obamas both tried hard to re-engage with the different leaders of Iran through diplomacy. They don’t pressurize Iran. For the purpose of re-engage  the White House has eased up on enforcing existing sanctions and overlooked much of Iran’s disruptive behavior in the Middle East. This is also called the policy of” maximum deference” towards Iran. 

This view is strongly opposed by administration officials. Secretary of State Antony Blinken is one of the top policymakers who have said White House is doing anything and keep pressurizing Iran and deny they are letting up on the Islamic Republic. Well, the growing influence of Iran in the region suggests otherwise. 

There has been a great chance for congress to make a big impact. A new bill being considered would give more money and authority to the government agency that enforces U.S. sanctions against Iran. The name of this agency is HSI(  Homeland Security Investigations). It tracks down and seizes illegal shipments of Iranian oil.

However this agency is a little bit complicated. The US Treasury Department is the source that funds this agency and it works under the department of Homeland Security. 

This arrangement has caused problems because the current funding system doesn’t support HSI’s operations, which involve costly but valuable oil seizures. Because of this, HSI’s work has been limited, allowing Iran’s illegal oil trade to grow.

The Iran Sanctions Enforcement Act, created by Senator Joni Ernst (R-Iowa), could change that. Introduced in both the Senate and the House late last year, the bill aims to create a special fund to support HSI’s activities and allocates $150 million for this purpose. 

The money isn’t a free gift, the agency has to pay it back within ten years using the profits from the seized Iranian oil sales. The plan also directs some of the profits to fund future HSI operations, support the U.S. Victims of State Sponsored Terrorism Fund, and even reduce the national debt.

The Iran Sanctions Enforcement Act has strong bipartisan support, with Connecticut’s Democratic Senator Richard Blumenthal as a key co-sponsor. The Biden administration also seems to back the bill, with Homeland Security Secretary Alejandro Mayorkas saying that his department would “welcome the additional resources” to enforce sanctions against Iran more effectively.

The act is likely to pass, especially if the Congress makes it a priority. It is important for two different reasons, The first one is, it would help the U.S. crack down on Iran’s illegal oil trade. This can reduce the funds used for terrorism. Secondly, the Biden administration’s commitment test through it.  If the White House supports fully funding sanctions enforcement, it indicates they’re serious about their Iran policy.

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