A major factor that has enabled the Russian war machine’s continued financing was the Biden administration’s egregiously weak sanctions on Russian energy. Stemming from worries about upward pressure on US energy prices during an election season. In a craven political move, National Security Advisor Jake Sullivan, raised the Russian sanctions on the way out the door in January. What was the point of substantial U.S. military and financial support over the past three years, without a commensurate and fulsome sanction support.
This administration has kept the enhanced sanctions in place and will not hesitate to go all in should it provide leverage in peace negotiations. Per President Trump’s guidance, sanctions will be used explicitly and aggressively for immediate maximum impact. They will be carefully monitored to ensure that they are achieving specific objectives.
Last month, the White House announced its maximum pressure campaign on Iran designed to collapse its already buckling economy. The Iranian economy is in disarray; 35% official inflation, has a currency that has depreciated 60% in the last 12 months, and an ongoing energy crisis. I know a few things about currency devaluations, and if I were an Iranian, I would get all of my money out of the Rial now.
This precarious state exists before our Maximum Pressure campaign, designed to collapse Iranian oil exports from the current 1.5-1.6, million barrels per day, back to the trickle they were when President Trump left office.
Iran has developed a complex shadow network of financial facilitators and black-market oil shippers via a ghost fleet to sell oil, petrochemical and other commodities to finance its exports and generate hard currency.
As such, we have elevated a sanctions campaign against this export infrastructure, targeting all stages of Iran’s oil supply chain. We have coupled this with vigorous government engagement and private sector outreach.
We will close off Iran’s access to the international financial system by targeting regional parties that facilitate the transfer of its revenues. Treasury is prepared to engage in frank discussions with these countries. We are going to shut down Iran’s oil sector and drone manufacturing capabilities.
https://home.treasury.gov/news/press-releases/sb0045
What’s the Farsi equivalent of ‘uncle’?
“Treasury Secretary Scott Bessent Remarks at the Economic Club of New York”
March 6, 2025