International Sanctions Strain Iran’s Commitment to Nuclear Deal

The UK, France, and German governments have announced that they would not waive sanctions against Iran following the timeline outlined in the 2015 nuclear agreement. This will infuriate Tehran and put the deal’s continued viability at even greater risk. As part of the original agreement’s sunset clause, some UN sanctions were supposed to be withdrawn by October 18, 2023, allowing Iran to buy and export ballistic missiles, including missiles and drones with a range of at least 300km (186 miles).
Ostensibly, Iran has faced significant sanctions, making it one of the world’s most heavily sanctioned nations. The US, is on the frontline with numerous harsh measures against the Islamic Republic, a trend that was catapulted with the Iran hostage crisis of 1979-81.
The three European countries involved in the deal, collectively referred to as the E3, expressed their concerns in a letter addressed to the EU’s external affairs chief, Josep Borrell. This reaction is angled on Iran’s continuous violations especially on the amount of enriched uranium storage and the access granted to UN inspectors for monitoring its nuclear activities. And as a result, the three countries argue that Iran related sanctions on ballistic missile program should continue to be in place.
At the moment, there are four primary sanctions facing Iran:
Trade
Back in April 1980, right during the lengthy 444-day hostage crisis at the US embassy in Tehran, the US decided to sever diplomatic relations with Iran. Alongside this diplomatic break, it imposed significant restrictions on trade and travel between the two nations.
Fifteen years later, the then-US President Bill Clinton made a significant announcement, imposing a comprehensive ban on trade and investment with Iran. A move that was put in place as counter to Iran’s alleged pursuit of nuclear weapons and its support for terrorism.
Nearly all forms of trade between the US and Iran remain prohibited. This encompasses many commodities, from oil to automobiles. However, it’s important to note that exceptions exist for essential items such as food, medicine, and humanitarian goods.
Arms
Despite the expiration of a United Nations arms embargo on Iran, the United States maintains its prohibition on trading weapons with the country. This measure has now persisted for three years. The UN embargo was lifted as part of a global agreement to curb Iran’s nuclear program. However, in 2018, then-US President Donald Trump withdrew the United States from this accord unilaterally. Consequently, the US has continued to impose sanctions on any individual or entity, whether based in the US or abroad, engaged in arms trade with Iran.
Recently Iran has cut down on the portion of its stockpile of highly enriched uranium by 40%. Israel has expressed concerns, suggesting Iran possesses enough enriched uranium to potentially create a single nuclear bomb in as little as a week. Still, news has it that Iran may not yet have the capability to deploy such weapons.
Finance
The US took stern measures to freeze Iranian government assets within its borders and prohibited American companies from conducting business with Iran’s central bank. More, US banks are also not allowed to act as intermediaries in fund transfers to Iran.
In 2018, the Trump administration further steered these sanctions to encompass foreign institutions engaged in transactions with Iran’s central bank. Such foreign entities could face the prospect of losing access to the US financial system. In an interview with EatNews, David, a crypto consultant and a regular user of Wise, shared his sentiments about making and receiving payments from his clients in Iran. One word he said, “Tedious.”
People
The United States took stern actions against Iranian officials, including figures such as Iran’s supreme leader, Ayatollah Ali Khamenei, and senior commanders from the Islamic Revolutionary Guard Corps. These actions involve freezing their assets as well as travel restrictions to the United States. The reason behind targeting these officials is their alleged participation in suppressing pro-democracy protests within Iran.
Further, the Biden administration has imposed sanctions on numerous individuals in response to the nationwide protests triggered by the tragic death of Mahsa Amini, a young Iranian Kurd who died in custody in September 2022. Her arrest was linked to an alleged violation of Iran’s strict dress code for women.
The sanctions also affect the Iran’s intelligence ministry and former president Mahmoud Ahmadinejad. These actions coincided with a prisoner swap occurring between the two nations. These sanctions were imposed explicitly in connection with the disappearance of Bob Levinson, a former FBI agent who went missing in Iran under mysterious circumstances and is presumed to have lost his life.
Iran’s permanent mission to the United Nations in New York made an announcement about a fortnight ago saying that, “As part of a prisoner exchange agreement between the two nations, five Iranian citizens who were unlawfully detained for bypassing the anti-Iran sanctions imposed by Washington will be set free.” The statement further clarified that among these individuals, some would return to Iran, while others would continue to stay in the United States.
It is quite clear that sanctions have with no doubt taken their toll on the already overburdened Iran. While restoring trust and full compliance remains opaque, Iran’s total compliance may seem arduous. Utterly, dialogue and diplomacy initiatives are critical in this trying time for the Iranian government.