WASHINGTON, D.C. – President Biden’s administration is considering implementing economic sanctions against Iran following an attack on Israel, but experts caution that options are limited due to potential repercussions with China and a potential rise in oil prices.
In response to an attack on its consulate, Iran launched more than 300 drones and missiles toward Israel over the weekend, which were largely intercepted by U.S.-led forces. Despite the minimal damage caused, U.S. officials and European allies are exploring economic retaliatory measures against Iran.
One possible course of action is to broaden sanctions on Chinese companies that have been purchasing significant amounts of Iranian crude oil. This source of revenue has been vital for Iran, especially in the absence of Western support due to existing stringent sanctions on the country.
However, the imposition of such sanctions could strain relations with China, which the Biden administration has been working to stabilize in recent months. Additionally, cutting off Iranian oil could lead to a global increase in oil prices, potentially impacting gas prices and affecting the upcoming 2024 presidential election.
The U.S. is treading carefully in the aftermath of Iran’s attack. While ruling out military intervention, the focus is on de-escalating tensions to prevent a larger conflict. In parallel, discussions are ongoing within the European Commission about imposing stricter sanctions on Iran.
There is pressure on the Biden administration from Congress to act decisively, with the House passing legislation aimed at curbing Iranian oil sales to China. Some experts argue that more aggressive measures are necessary to prevent Iran from profiting off its oil exports in the wake of the recent attack on Israel.
However, others believe that the U.S. has already exerted maximum pressure on Iran since the Trump administration’s withdrawal from the nuclear deal. This prolonged economic strain on Iran limits the range of responses available to policymakers in moments of crisis.