Democrats trying to block effective sanctions against Iran

Washington Free Beacon:

The insurance industry and prominent Democratic lawmakers are attempting to water down a new Iran sanctions bill that would penalize any company that underwrites Iranian affiliates, according to insiders on Capitol Hill.

Sens. Harry Reid (D., Nev.), Tim Johnson (D., S.D.), and others have quietly lobbied to weaken the revamped sanctions language, which has been circulating on Capitol Hill for several months.

The legislation, which is currently working its way through the House, would tighten existing Iran sanctions by punishing any insurance company that underwrites activities that bolster the Iranian oil industry. Insurance providers could be sanctioned for underwriting shipping companies, cargo carriers, or airlines that have been subject to sanctions.

Johnson and Reid have each received nearly half-a-million dollars from individuals and political action committees affiliated with the insurance industry, leading some to wonder whether these lawmakers are doing their corporate donors’ bidding. Neither lawmaker responded to a request for comment.

“There is significant pressure being brought to bear by the Obama Administration in coordination with the insurance lobby to stop any far-reaching insurance sanctions against Iran,” said a congressional source. “Whether money plays a role, who knows, but the pressure is intense and Democrats—and even some House Republicans—appear to be carrying the water.”

Denying insurance to Iranian carriers has been one of the most effective ways to foil their oil and gas business. It is the reason that non Iranian ships no longer carry their oil. I see no good reason not to extend these sanctions to other aspects of their business. The Democrats who oppose the sanctions should at least explain themselves and their position.