Cohen: Iran Will Lose $11 Billion in Revenue by the End of Nuclear Negotiations

David Cohen, the Deputy Assistant Secretary for Terrorism and Financial Intelligence at the U.S. Treasury, stated that low oil prices will cause Iran to lose billions of dollars in revenue by the end of nuclear negotiations on July 1. In a statement prepared for a Q&A session of the Senate Foreign Relations Committee, Cohen said, "If oil prices remain at their current level, Iran will lose $11 billion during its nuclear negotiations with six world powers, which have been extended for seven months." Since last summer, oil prices in global markets have lost half their value, with West Texas Intermediate, the U.S. benchmark crude, and North Sea Brent falling below $50. The price of OPEC's oil basket is fluctuating between $40 and $45, which includes Iran's heavy crude. According to Reuters, Cohen is expected to advise the Republican-controlled Senate not to increase existing sanctions against Iran. The Obama administration has explicitly opposed intensifying sanctions during the extension of nuclear talks between Tehran and the six world powers, stating that such a decision would isolate the U.S. among its allies. In his annual address to Congress on January 30, President Obama reiterated this stance, saying, "New congressional sanctions would guarantee the complete failure of diplomacy and isolate the U.S. from its allies, certainly leading to the resumption of Iran's nuclear program." He also threatened, "Any new sanctions that obstruct diplomatic progress will be vetoed." The Senate Foreign Relations Committee is working on a proposal that would allow Congress to play a significant role in approving any comprehensive final agreement. The Q&A session of this committee will be held on Wednesday, focusing on the status of negotiations and Congress's role in them. The Senate Banking Committee is set to review a proposal by Senators Mark Kirk (Republican) and Bob Menendez (Democrat) next week, which states that if the negotiating parties do not reach an agreement on Tehran's nuclear program within the next six months, sanctions against Tehran will be intensified. This proposal does not intend to impose new sanctions on Iran during the negotiations, but if the talks do not yield results, the easing of penalties on Tehran will come to an end, and new sanctions will be imposed in the months following the July 1 deadline. Iran and some of the countries participating in the 5+1 group say there is a chance for a comprehensive final agreement; however, disputes remain over the level of uranium enrichment, the number of active centrifuges in Iran, and the fate of the Arak heavy water reactor. According to the Associated Press, Kirk and Menendez are working hard to garner 67 votes from senators for their proposal, which would prevent Obama from vetoing it. Voting on this proposal is expected to take place in early February. It is still unclear whether they have managed to gain the support of more Democrats in the Senate; however, such occurrences are rare, according to the Associated Press.