Arr! Biden's reply to China's sneaky ways with Iranian oil sanctions be naught but a feeble blunder, me hearties!
2024-01-30
Arrr! The Iranian black gold be flowin' through the seas in grand fleets of ghostly ships, bound for China. But, matey, what be the impact on funding for scallywag armies o'er the Middle East?
To put it plainly, the purpose of imposing sanctions on Iranian oil is to limit Iran's financial resources, preventing them from funding proxy militaries such as the group responsible for killing US soldiers in Jordan, as well as Hamas and Hezbollah who target Israel. Former Ambassador Mark Wallace, who leads the group United Against Nuclear Iran, explains that without the ability to export oil, Iran cannot sustain its budget, let alone support and arm its proxies. This, in turn, would lead to a more stable Middle East.However, the reality seems to contradict this intention. The Gaza war and numerous attacks on US targets in the region demonstrate that stability in the Middle East is far from achieved. Iranian oil revenue is thriving despite the US sanctions, and energy market analyst Phil Flynn even suggests that the industry has experienced a renaissance since President Biden took office.
During the Trump administration, the US pursued a maximum pressure campaign, aiming to completely halt Iranian exports by ending sanction waivers. Former Secretary of State Mike Pompeo boldly stated that the goal was zero exports, but the duration of this situation depended on Iran's leadership.
Currently, hundreds of tankers, known as the "ghost armada" or "dark fleet," traverse the seas, concealing their locations while delivering sanctioned Iranian crude primarily to China. The black market created by an estimated 150 small refineries in China turns this Iranian crude into usable petrochemicals, earning Iran billions of dollars.
Critics argue that the Biden administration, in its eagerness to revive the JCPOA nuclear deal, is not taking any action to disrupt this illicit market. This failure to disrupt the revenue stream that supports these proxy groups has consequences, as seen in the deaths of US soldiers in Jordan. Some analysts argue that the administration's appeasement policy towards Iran is to blame for these deaths.
Overall, the strategy of imposing oil sanctions and enforcing them against the transport and end users of Iranian crude is viewed as ineffective and lacking in strength. There is a need for a more assertive approach to address the issue of funding for proxy militaries.