Even prior to its withdrawal of troops from Afghanistan, newspapers globally have questioned the United States’ status as ‘the world’s policeman’. An Iranian tanker bound for Lebanon with sanctioned fuel onboard is the latest test for the US’ exercise of punitive power and the gravitas of its condemnations.

The situation is testing current sanctions in a dynamic way; the United States currently prohibits exporting oil from Iran and import into Syria, where the tanker is expected to arrive early next week. However, an energy and economic crisis has ravaged Lebanon for most of the summer months – its two main power plants were deactivated in early July and the local currency has been devalued by approximately 85 per cent.

The militant group Hezbollah, which has been designated as a terrorist organisation in the United States, is seeking to capitalise on this crisis by arranging unsanctioned support by way of Iran. Utilising the black market has, thus far, allowed Hezbollah to leverage better prices. Dorothy Shea, the US Ambassador in Beirut, has expressed the government’s intention to transfer Egyptian gas for the generation of power in Lebanon via the Arab Gas Pipeline.

The situation in Lebanon is ultimately in a limbo. The Biden administration’s plan risks liability for Cairo to sanctions under the Caesar Syria Civilian Protection Act due to the necessity of paying transit fees to the Syrian government. This is evidently in contravention of the Act which was implemented enthusiastically on a bipartisan basis to restrict funding to the Assad regime. According to World Bank officials, the US-proposed deal would cut two-thirds of Lebanon’s electricity deficit, without requiring ‘much effort on the part of the Lebanese politicians’. However, the US deal risks lawsuits based on the Caesar Act and a prolonged process unsuitable to the urgent need of the Lebanese people.What the result will be and which sanctions will prevail un-violated, only time will tell

by Dite Bagdonaite

Make or Break: US Sanctions Tested by Iranian Fuel Tanker