Sanctions Gain Teeth

With the enactment of a new U.S. sanctions regime earlier this month, the tanker industry has once again found itself drawn directly into the fray surrounding Iran. On July 1st, President Obama signed the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010, imposing further restrictions on business dealings with Iran. These unilateral sanctions were designed to reinforce a new set of UN sanctions passed in June by attempting to further limit Iran’s critical need for refined product imports, highlighted in the chart below. While companies actively engaged in such trades will likely have long suspected such a tightening was forthcoming, the wide-ranging nature and stiff penalties contained within the recently-passed law warrant close attention. Download here