On December 14, 2024, U.S. Treasury Secretary Janet Yellen issued a stark warning to Chinese banks regarding potential U.S. sanctions due to their connections with Russia. This advisory comes as the Biden administration is contemplating further sanctions on 'dark fleet' tankers, which are used to transport oil without adhering to international regulations. Yellen indicated that the U.S. may also lower the $60-per-barrel oil price cap on Russian oil, a measure aimed at curtailing Moscow's revenue from oil exports [de680b8a].
Brent crude was trading at $74.50 per barrel on the same day, a significant drop from $85.57 since the cap was established in December 2022. Yellen emphasized the critical need to reduce Russian oil revenues to bolster support for Ukraine as the U.S. prepares new G7-backed sanctions ahead of President-elect Donald Trump's inauguration on January 20, 2025 [de680b8a].
This warning follows the Biden administration's recent sanctions against Iran, which were intensified on December 6, 2024, targeting 35 entities and vessels linked to Iran's 'shadow fleet' involved in the illicit transportation of petroleum. These sanctions were a response to Iran's aggressive actions, including its October 1 attack on Israel and nuclear escalations. Acting Under Secretary Bradley T. Smith reaffirmed the U.S. commitment to disrupting Iran's oil transport networks [12df33e5].
The sanctions against Iran also come on the heels of previous measures taken in November 2024 against 26 entities associated with Hussam Ahmed Qaterji, a key figure financing the Iranian Revolutionary Guard Corps (IRGC). Qaterji's operations have been crucial in generating revenue for the IRGC through oil sales to Syria and China, and his family's influence in the oil sector has grown significantly following the assassination of his brother in an Israeli airstrike [0dfff1c9].
In a broader context, the Iranian oil sector remains a significant challenge, with sales reaching $70 billion in 2023. Under the Biden administration, Iranian oil exports have tripled from 400,000 barrels per day in 2020 to over 1.5 million barrels per day in 2023. This surge has raised alarms about the effectiveness of sanctions, prompting Donald Trump to plan a vigorous policy aimed at bankrupting Iran [d344462f].
Moreover, the National Iranian Oil Company has been linked to the IRGC, complicating international efforts to curb Iran's oil revenues. Recent reports have highlighted the involvement of Eurobank Ergasias in facilitating payments for Iranian oil, underscoring the intricate web of financial networks supporting these transactions. Experts like Norman Roule emphasize the need for stringent standards to prevent banks from facilitating illegal oil sales, reflecting the ongoing struggle against sanctions evasion [d344462f].
The U.S. Treasury has made it clear that it will continue to take action against individuals and entities that facilitate Iran's and Russia's military and financial operations, reflecting an ongoing commitment to countering their influence and support for militant groups in the region [0dfff1c9][12df33e5].