Former Top Treasury Official Warns Senators Against Iran Sanctions Bill (2024)

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Former Top Treasury Official Warns Senators Against Iran Sanctions Bill (1)

WASHINGTON ― President Donald Trump’s former acting treasury secretary warned lawmakers that an Iran sanctions bill under consideration in the Senate Foreign Relations Committee could undermine the Iran nuclear agreement and hurt U.S. relations with allies.

The legislation as currently written would “provoke a terrible reaction in Iran and with our allies, as it would be seen as contrary to at least the spirit of the Joint Comprehensive Plan of Action,” Adam Szubin wrote Friday in a letter to committee members.

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Szubin, who left government in February, led U.S. sanctions policy against Iran in his previous role as Treasury Department acting under secretary for terrorism and financial intelligence. The Treasury Department has cited this effort as a key reason Iran agreed to an international deal that rolled back its nuclear program in exchange for sanctions relief.

Though Szubin was nominated for the job by former President Barack Obama, he is considered hawkish on Iran and has pushed for aggressive enforcement of sanctions. Trump asked Szubin to serve as acting head of the Treasury Department until Secretary Steve Mnuchin was confirmed.

The Senate legislation, called the Countering Iran’s Destabilizing Activities Act, was introduced in March and has broad bipartisan support. Twenty-nine Republicans and 14 Democrats have signed on as co-sponsors. But Szubin’s letter is likely to carry significant weight with lawmakers.

“It’s certainly a letter to take note of and will be read seriously,” a committee aide told HuffPost.

The Senate’s sanctions bill in its current form “would contribute no benefit, as it would impose no additional pressure on Iran’s malign activities outside the nuclear space,” Szubin wrote. “As such, I think it would be harmful to our interests to pass this bill.”

He recommended either scrapping the legislation or making two changes:

  • Removing a clause that would impose new sanctions on anyone the president determines “poses a risk of materially contributing” to Iran’s ballistic missile program. That change would leave in place language calling for sanctions on anyone who has “materially contributed” to the program.

  • Removing a section that would create new conditions for the lifting of sanctions related to Iran’s ballistic missile program. This section would include sanctions that the U.S. is obligated to lift in the future as part of the nuclear deal. Lawmakers also could add an exemption stating that sanctions would be lifted as required by the nuclear accord, Szubin wrote.

An aide to Senate Foreign Relations Committee Chairman Bob Corker (R-Tenn.) declined to comment on whether he was open to any of Szubin’s suggestions. Instead, the aide pointed to the bill’s broad bipartisan support, and said the chairman “looks forward to the committee advancing it to the Senate floor in the coming weeks.”

Shortly after the sanctions bill was introduced in March, seven foreign policy heavyweights who served in the Obama administration voiced concerns similar to Szubin’s. The experts, who served in the National Security Council, State Department, Pentagon, and CIA, additionally objected to language in the bill they argued would likely lead the president to designate Iran’s Revolutionary Guards, or IRGC, a terrorist group.

The Trump administration has already considered an executive order designating the organization a terrorist group. Officials from the State Department and Pentagon warned that the designation could complicate the U.S. fight against ISIS in Iraq, where IRGC-backed groups are also fighting ISIS.

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The Senate Foreign Relations Committee is expected to hold a markup session to consider changes to the bill at the end of May. The markup will likely come days after the May 19 presidential election in Iran, where current President Hassan Rouhani faces a tough re-election challenge from more hard-lined candidates.

Sen. Ben Cardin (Md.), the ranking Democrat on the Foreign Relations Committee, told reporters last month that the timing of the legislation was unrelated to elections in Iran.

Trump, who during the campaign described the nuclear accord as “the worst deal ever negotiated,” has said he will look for ways to renegotiate the agreement. Secretary of State Rex Tillerson certified Iran’s compliance with the deal last month ― but added that Trump had ordered an inter-agency review to evaluate whether the U.S. should continue to waive sanctions pursuant to the agreement.

Read Szubin’s letter here:

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Former Top Treasury Official Warns Senators Against Iran Sanctions Bill (2024)

FAQs

Did Biden relax Iran sanctions? ›

Nevertheless, it is true that President Biden has repeatedly ordered the suspension of Iran sanctions. Here are a few examples: In February 2022, Biden attempted to enable indirect US-Iranian negotiations aimed at reviving the 2015 JCPOA by issuing "sanctions waivers" for Russian, Chinese and European companies.

Does the US still have sanctions on Iran? ›

And today, we are holding Iran accountable—imposing new sanctions and export controls on Iran. The sanctions target leaders and entities connected to the Islamic Revolutionary Guard Corps, Iran's Defense Ministry, and the Iranian government's missile and drone program that enabled this brazen assault.

Which countries have sanctions against Iran? ›

EU sanctions against Iran

EU–Iran relations have been strained in the early 2010s by the dispute over the Iranian nuclear program. The European Union along with United States have imposed sanctions against Iran over the controversies around Iranian nuclear program.

What is the Iran sanction waiver? ›

This sanctions waiver, originally approved by the Biden administration in March 2024, allows Iraq to transfer billions of dollars in electricity payments to Iran via third-party countries. The sanctions waiver was last approved in November 2023 and set to expire in April 2024.

Who is the biggest buyer of Iran oil? ›

Iran's petroleum exports have reportedly reached new heights in 2024, with most exports destined for China.

What is the $10 billion waiver to Iran? ›

Waiver Change Gives Iran Access to Funds in Oman

Last summer, the Biden administration changed that waiver to allow Iraq to transfer $10 billion to Iran and to deposit future payments into Iranian bank accounts in Oman. The new policy also allowed Iran to convert the money from Iraqi dinars to euros.

Why is the US against Iran? ›

The United States attributes the worsening of relations to the 1979–81 Iran hostage crisis, Iran's repeated human rights abuses since the Islamic Revolution, different restrictions on using spy methods on democratic revolutions by the US, its anti-Western ideology and its nuclear program.

Who does Iran sell oil to? ›

Brisk Chinese demand is encouraging Iran to ramp up production. Roughly 90% of Iran's crude oil exports went to China, data from European research firm Kpler shows. Iran has been hit by American and European sanctions over its nuclear development and human rights violations.

Can US citizens travel to Iran? ›

Iran - Level 4: Do Not Travel. Do not travel to Iran due to the risk of terrorism, civil unrest, kidnapping and the arbitrary arrest of U.S. citizens. Exercise increased caution due to wrongful detentions. Updated to add the Terrorism Risk Indicator and risk of surrogacy tourism.

Has the U.S. ever been sanctioned? ›

The United States of America had multiple sanctions imposed on them throughout history.

Is Iran a democracy? ›

Like many Western democracies, Iran has a president and a parliament (Majles). Unlike other Western or Islamic governments, the government of the Islamic Republic of Iran is supervised by a supreme leader and an appointed and unelected Guardian Council half of which is made up of Islamic jurists.

Can Americans do business in Iran? ›

U.S. persons are prohibited from all transactions or dealings described in Executive Order 13608 with persons listed under Executive Order 13608, unless authorized by OFAC or where the transaction is otherwise exempt from regulation under the International Emergency Economic Powers Act .

What is the new sanction to Iran? ›

On 14 May 2024, the Council decided to broaden the scope of the sanctions regime in view of Iran's military support for armed groups in the Middle East and Red Sea region and of the drone and missile attacks Iran carried out against Israel in April 2024.

Is Iraq a sanctioned country? ›

Administration. As described by the United Nations (UN), the United Nations Security Council (UNSC) Resolution 661 imposed comprehensive sanctions on Iraq following that country's August 1990 invasion of Kuwait.

What is Section 5 of the Iran Sanction Act? ›

5) Directs the President to impose certain economic sanctions against persons who with actual knowledge have: (1) made an investment of $40 million or more in any 12-month period that directly contributes to Iran's or Libya's ability to develop its petroleum resources; or (2) exported to Libya any goods or technology ...

What did Biden say about Iran? ›

Statement from President Joe Biden on Iran's Attacks against the State of Israel. Earlier today, Iran—and its proxies operating out of Yemen, Syria and Iraq—launched an unprecedented air attack against military facilities in Israel. I condemn these attacks in the strongest possible terms.

Does the US help Iran? ›

Nuclear support

The U.S. helped Iran create its nuclear program in 1957 by providing Iran its first nuclear reactor and nuclear fuel, and after 1967 by providing Iran with weapons grade enriched uranium. Iran's nuclear program was launched as part of the Atoms for Peace program.

What is the US stance on Iran Israel? ›

We do not seek conflict with Iran, but we will not hesitate to act to protect our forces and support the defense of Israel."

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