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SEC. 1. SHORT TITLE.
This division may be cited as the “Stop Harboring Iranian Petroleum Act” or the “SHIP Act”.
SEC. 2. STATEMENT OF POLICY.
It is the policy of the United States—
(1) to deny Iran the ability to engage in destabilizing activities, support international terrorism, fund the development and acquisition of weapons of mass destruction and the means to deliver such weapons by limiting export of petroleum and petroleum products by Iran;
(2) to deny Iran funds to oppress and commit human rights violations against the Iranian people assembling to peacefully redress the Iranian regime;
(3) to fully enforce sanctions against those entities which provide support to the Iranian energy sector; and
(4) to counter Iran’s actions to finance and facilitate the participation of foreign terrorist organizations in ongoing conflicts and illicit activities due to...
1) The “Stop Harboring Iranian Petroleum Act” (“SHIP Act”) is likely the most consequential new sanctions statute enacted as part of the 2024 "National Security Supplemental". As detailed in the Iran Secondary Sanctions Comparison Table, there are, as of 5-3-24, many secondary sanctions authorities targeting Iran's energy sector, but all require at least some sort of direct or indirect dealing with Iran or a person subject to some form of sanction. Here, the sanctions apply with respect to certain dealings (transport, refinement, ship-to-ship transfer) of “Iranian crude oil or petroleum products” / “any petroleum product originating from the Islamic Republic of Iran”. In other words, the sanctions apply to dealings in the covered goods, irrespective of whether there is actual Iranian person involvement. Put differently, the secondary sanctions are a secondary sanctions equivalent of 560.206, which prohibits in Iranian origin goods in a...