U.S. Treasury Deputy: More Actions Against Iran Are on the Way

The U.S. Treasury Deputy for Financial Intelligence, Sigal Mandelker, stated on Monday, November 21, that Washington is not concerned about the European Union's special financial mechanism to bypass sanctions and trade with Iran, as foreign companies are halting their activities in Iran. In a press conference in London, she said, "I think the more important news in Europe is that foreign companies are leaving Iran in droves." She added that she is not worried at all about the European financial tool for trading with Iran, believing that they will find other ways to cooperate with Europe. She also noted that SWIFT, the international banking transaction company, has recently stopped providing services to the Central Bank of Iran and several financial institutions. The return of U.S. sanctions against Iran is part of a broad effort by President Donald Trump to compel Iran to abandon its nuclear and missile programs, as well as to cease support for Tehran's proxy groups in Yemen, Syria, Lebanon, and other parts of the Middle East. Trump withdrew the U.S. from the six-power agreement with Iran known as the JCPOA on May 8 and reinstated suspended sanctions in mid-August and November of this year. These sanctions primarily target oil exports and Iran's financial sector, especially 50 banks and their subsidiaries. Iran, the third-largest producer in the Organization of the Petroleum Exporting Countries (OPEC), has referred to the U.S. actions as an "economic war" and stated that Washington cannot reduce Iran's oil exports to zero. The European Union, which expressed regret over the return of U.S. sanctions, announced that it would implement a special mechanism known as SPV to facilitate trade between European companies and Iran. Mandelker expressed doubt that a common ground could be found, stating that the threats are real and present in Europe. She hoped that the U.S. and Europe would take joint action against Iran. She stated that Washington will rigorously enforce all sanctions against Iran. When asked about further U.S. actions, she said, "You will see that more actions will be taken by us regarding Iran." Meanwhile, in another event, the CEO of Russian company Lukoil stated that they will not sign the Mansouri oil field contract with Iran as long as sanctions continue. Vagit Alekperov said, "Due to sanctions against Iran, we cannot invest in its energy projects. Earlier this year, we were actively working in the Mansouri oil field, the contract was almost ready, but it is unlikely to be signed. As long as the sanctions continue, we will not sign this contract." The second wave of U.S. sanctions against Iran was implemented last Monday, targeting oil exports and cutting access for over 700 banks, institutions, and individuals to the U.S. financial system. However, the U.S. government has temporarily exempted eight countries buying Iranian oil, including Japan, South Korea, India, China, Italy, Greece, and Turkey from these sanctions. Energy market experts estimate that Iran's oil exports have decreased by about one million barrels per day due to the sanctions.