Trump’s Oil Waiver Gives Iran a Dangerous Financial Lifeline

Excerpt

The United States has a long history of trading with its enemies. During World War I, Congress passed the Trading With the Enemy Act to regulate—not prohibit—commercial transactions with wartime adversaries. The logic was straightforward: Sometimes the national interest requires controlled economic engagement even with nations the U.S. is actively fighting. The law remains on the books today, and its underlying premise that wartime trade can serve strategic purposes has informed American economic statecraft for more than a century. 

The Trump administration now believes we are in such a moment, where it makes sense to allow the sale of sanctioned Iranian oil if it helps to stabilize global oil markets. But the administration’s approach is misguided—and it fails to prioritize measures that could not only keep money out of the regime’s coffers but also promote transparency in the process. In short, its decision will only help the regime in Iran.

Max Meizlish is a research fellow at the Foundation for Defense of Democracies. He previously worked on sanctions enforcement and licensing at the Treasury Department’s Office of Foreign Assets Control.