Iran's supreme leader Ayatollah Ali Khamenei delivers a televised speech, marking the 31st death anniversary of country's former leader Ayatollah Ruhollah Khomeini, in Tehran, Iran, on June 3, 2020. Reuters
Iran's supreme leader Ayatollah Ali Khamenei delivers a televised speech, marking the 31st death anniversary of country's former leader Ayatollah Ruhollah Khomeini, in Tehran, Iran, on June 3, 2020. Reuters
Iran's supreme leader Ayatollah Ali Khamenei delivers a televised speech, marking the 31st death anniversary of country's former leader Ayatollah Ruhollah Khomeini, in Tehran, Iran, on June 3, 2020. Reuters
Iran's supreme leader Ayatollah Ali Khamenei delivers a televised speech, marking the 31st death anniversary of country's former leader Ayatollah Ruhollah Khomeini, in Tehran, Iran, on June 3, 2020. R

Republicans in Congress to introduce biggest sanctions bill against Iran


Joyce Karam
  • English
  • Arabic

Republicans in Congress are poised to introduce a sanctions bill against Iran on Wednesday that will target its leaders, regional proxies and end economic waivers currently allowed in places such as Iraq.

The bill would be the largest punitive measures introduced against Iran by Congress.

The office of Congressman Joe Wilson, one of the proposal's sponsors, confirmed to The National that it will include 140 initiatives against Iran and tighten pressure on Russia and China to step up their action against the regime.

The bill is timed as the Trump administration seeks pressure to renew the UN arms embargo on Iran that will expire in October. According to the Washington Free Beacon, it would target an estimated $70 million (Dh257m) of annual security aid to Lebanon and sanctions waivers granted to Iraq that allow it to sell electricity to Iran.

The Republican Study Committee is behind the proposal – first reported by the Washington Free Beacon – which has 147 members in the House on board, including RSC chair Mike Johnson.

So far, no Democrats, who control the House of Representatives, have supported the bill, which 

in its current form could also face hurdles from the administration of President Donald Trump.

US Secretary of State Mike Pompeo has supported renewing waivers for Iraq, and continuing US military aid to Lebanon.

The bill would block any administration efforts to lift sanctions on Iran without Congress approval, and would impose more sanctions on its proxies in Iraq.

But the bill could offer the White House tools to pressure Russia and China into renewing the current UN arms embargo on Iran, expiring in October.

If the embargo is not renewed, Congress would "play a central role in crafting new embargoes on the sale of weapons to Iran", the Washington Free Beacon  reported.

This would include "new sanctions on the arms industries of countries like Russia and China that return to selling weapons to Iran, the banks facilitating any sale of weapons to Iran, and the companies shipping weapons”, the paper said.

The bill would also halt US aid to Lebanon and sanction Iranian supreme leader Ali Khamenei’s “multibillion-dollar financial empire, as well as the country's petrochemical, financial and automotive sectors”, the report said.

Firas Maksad, a Middle East analyst in Washington and a professor at George Washington University, said the proposal is huge in its penalties but will face several hurdles.

“The proposed legislation is designed to be the mother of all sanctions bills, but its size and the multiplicity of thorny foreign policy issues it impacts means it will be hindered by political bickering,” Mr Maksad said.

“Republican foreign policy hawks in Congress believe it will be difficult for the administration to resist pressure for a tougher approach to Iran, Russia and China” in an election year.

But technically the bill could go through several amendments to win support from both parties in Congress.

“The legislation will need to navigate both chambers of congress and go through a reconciliation process," Mr Maksad said.

"If elements of it are ultimately signed into law, it will be after protracted negotiations and the inclusion of a presidential waiver, thereby allowing the president to suspend its provision on national security grounds when necessary."

Ryan Bohl, an analyst at the US intelligence company Stratfor, said he did not expect it to pass.

“It seems unlikely to pass, especially with the November election coming up and Democrats not wanting to look like they're creating overseas tension,” Mr Bohl said.

But the legislation could “pressure, even inspire, the Trump administration to tighten sanctions further before the election”, he said.

Mr Bohl said the emphasis on Lebanon and Iraq was significant in the proposal.

“Lebanon and Iraq are becoming a hawk priority," he said.

"The pro-sanctions community believes that they must crush Iran's links to those countries and are willing to risk US ties in Beirut and Baghdad to do so.”

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Favourite quote: “My people and I will not settle for anything less than first place” – Sheikh Mohammed bin Rashid.

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Will the pound fall to parity with the dollar?

The idea of pound parity now seems less far-fetched as the risk grows that Britain may split away from the European Union without a deal.

Rupert Harrison, a fund manager at BlackRock, sees the risk of it falling to trade level with the dollar on a no-deal Brexit. The view echoes Morgan Stanley’s recent forecast that the currency can plunge toward $1 (Dh3.67) on such an outcome. That isn’t the majority view yet – a Bloomberg survey this month estimated the pound will slide to $1.10 should the UK exit the bloc without an agreement.

New Prime Minister Boris Johnson has repeatedly said that Britain will leave the EU on the October 31 deadline with or without an agreement, fuelling concern the nation is headed for a disorderly departure and fanning pessimism toward the pound. Sterling has fallen more than 7 per cent in the past three months, the worst performance among major developed-market currencies.

“The pound is at a much lower level now but I still think a no-deal exit would lead to significant volatility and we could be testing parity on a really bad outcome,” said Mr Harrison, who manages more than $10 billion in assets at BlackRock. “We will see this game of chicken continue through August and that’s likely negative for sterling,” he said about the deadlocked Brexit talks.

The pound fell 0.8 per cent to $1.2033 on Friday, its weakest closing level since the 1980s, after a report on the second quarter showed the UK economy shrank for the first time in six years. The data means it is likely the Bank of England will cut interest rates, according to Mizuho Bank.

The BOE said in November that the currency could fall even below $1 in an analysis on possible worst-case Brexit scenarios. Options-based calculations showed around a 6.4 per cent chance of pound-dollar parity in the next one year, markedly higher than 0.2 per cent in early March when prospects of a no-deal outcome were seemingly off the table.

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Europe’s rearming plan
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  • Create new "instrument" providing €150 billion of loans to member countries for defence investment
  • Use the existing EU budget to direct more funds towards defence-related investment
  • Engage the bloc's European Investment Bank to drop limits on lending to defence firms
  • Create a savings and investments union to help companies access capital
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- energy drinks, milk drinks, fruit yoghurts and fruit drinks, cocoa drinks, meat and chicken extracts and instant sauces

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Transmission: two-speed

Power: 671hp

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SPECS

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Power: 235hp
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