Israel Matzav: Iran sanctions act passes Congress

Iran sanctions act passes Congress

On Thursday, the US Senate approved by an 80-17 vote legislation that bars companies that sell more than $1 million per year of refined petroleum products to Iran from bidding on United States Department of Energy contracts. Similar legislation has already been passed by the House and it now goes to President Obama for signature. There is also now a bill pending in the House that would prohibit any non-US company that sells gasoline to Iran from doing business in the United States.

Meanwhile, Iran is seeking to increase its gasoline production.

The plan focuses on supplying the country's needed gasoline within 48 hours to curb the possible impacts of sanctions imposed by the US on the country.

The initiative first proposed by the Iranian oil minister proposes change in the production process of a number of Iranian petrochemical complexes.

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Iran is the world's fourth-largest exporter of crude oil but due to the lavish consumption of heavily subsidized fuel by Iranian drivers, the country is forced to import large amounts which it then sells at very cheap pump prices, burdening the budget through giant subsidies. Iran imports 22-25 million liters of gasoline per day at present.

Unfortunately, this seems unlikely to work. And while we're figuring that out, the Iranian centrifuges are churning out enriched uranium.

What could go wrong?

Israel Matzav: Iran sanctions act passes Congress