Iran Sanctions are a subject of international and geo-political studies. There is a number of sanctions imposed against Iran by different countries. Most of it is imposed by the United States.
Introduction
Several countries, including the United States, and international organizations have imposed sanctions against the country. Following the storming of the US Embassy in Tehran by a group of radical youths. They also kidnapped people and held them for ransom. In November 1979, the United States enacted the first sanctions. Sanctions were lifted upon the rescue of the hostages in January 1981.
The US reimposed Iran sanctions in 1987. It was in reaction to the country’s sanctions in the Persian Gulf from 1981 to 1987 against the US and other countries’ boats. It was also done as it supported terrorism. Sanctions against firms doing business with the Iranian government further strengthened in 1995.
After that Iran declined to comply with UN Security Council Resolution 1696. Which ordered that it ceased its uranium enrichment program. In December 2006, the UN Security Council passed Resolution 1737. Which imposed the third sanction.
The Iran sanctions targeted investments in oil, gas, and petrochemicals. It also targeted refined petroleum product exports. The economic contacts with the Islamic Revolutionary Guard Corps (IRGC) were also targeted. Banking and insurance transactions, shipping, commercial web hosting, and domain name registration services were all covered. Following UN Resolutions, sanctions on it are already intensified.
History of Iran Sanctions
Its economy and people have suffered greatly as a result of sanctions. Since 1979, the US has led international attempts to use sanctions to influence its policies. The goal of the country’s uranium enrichment program is to develop a nuclear weapons capability. Iran claims that its nuclear program is for peaceful purposes. This includes generating power and treating patients. Senators in the United States used the failure of nuclear talks between the country and Western governments. They used it as justification for imposing tougher economic sanctions on Iran.
On April 2, 2015, the P5+1 and the country signed a tentative deal in Lausanne, Switzerland. It was on a framework that, once finalized and implemented, would eliminate most sanctions in exchange for ten-year constraints on Iran’s nuclear program. On October 18, 2015, the Joint Comprehensive Plan of Action, the final accord, got signed. As a consequence, on January 16, 2016, the United Nations eased Iran sanctions. The United States announced its withdrawal from its nuclear deal on May 8, 2018. The US placed sanctions on its banking sector in November 2018. which will further tighten in 2019 and 2020.
On February 21, 2020, the FATF placed Iran on its blacklist.
As negotiated in Iran’s 2015 nuclear deal, the UN arms embargo on Iran will expire on October 18, 2020. This will allow them to buy foreign military equipment.
The 1979 Sanctions
After this, radical students stormed the American Embassy in Tehran. They also took hostages in November 1979. The US implemented Iran Sanctions in spite of these pressure tactics. Executive Order 12170 contained a trade embargo and the freezing of around $8.1 billion in Iranian assets. This includes bank deposits, gold, and other valuables. As part of the Algiers Accords in January 1981, the limitations got removed. This was a negotiated agreement for the release of the hostages.
Since 1984, the US is imposing Iran Sanctions
The Iran–Iraq War, which began in September 1980 was still ongoing. In 1984, the United States implemented sanctions against it. Which prohibits any weapon shipments and US support to Iran.
President Bill Clinton issued multiple executive orders in 1995. It was in reaction to the country’s nuclear program. It was also for its backing of terrorist organizations. Which includes Hezbollah, Hamas, and Palestine Islamic Jihad. Executive Order 12957, issued on March 15, 1995, prohibited US participation in Iran’s energy sector. Executive Order 12959, issued on May 6, 1995, prohibited US trade and investment in Iran.
The Iran and Libya Sanctions Act (ILSA)
The Iran and Libya Sanctions Act (ILSA) went into effect on August 5, 1996. In 2006, the sanctions imposed on Libya finally got removed. The ILSA has renamed the Iran Sanctions Act (ISA). Members of the United States House of Representatives voted 400 to 20 in favor of tougher penalties on July 31, 2013.
The United States withdrew from the nuclear deal on May 8, 2018. US President Donald Trump made the announcement. Following the US withdrawal, the EU approved a revised blocking statute on August 7, 2018. This was to repeal US penalties on countries doing business with Iran.
United States 4th Set of Iran Sanctions
The United States’ fourth set of sanctions went into force in November 2018. The goal was of forcing the country to adjust its foreign policies. Also, cease its backing of regional militant groups. The demand was to end its ballistic missile development, according to the White House. A US official indicated in September 2019 that anyone who trades with Iran or purchases its oil will face sanctions.
In September 2019, Trump authorized the Treasury Department to “significantly escalate” sanctions on them. This was in response to a suspected Iranian strike on vital Saudi Arabian oil facilities. The Iranian central bank was also the subject of the new sanctions. The new penalties, according to an official, target the Supreme Leader’s inner circle’s financial assets. The New York Times reports, however, that Tehran has denied any involvement in the strikes on Saudi oil infrastructure.
On August 25, 2020, the UN Security Council halted the United States’ attempt to re-impose snapback penalties on them. They contended that the measure would be impossible to implement. The President of the UN Security Council, Indonesian ambassador Dian Triansyah Djani, declared that he is “not in a position to take further action” on the US request. Citing a lack of consensus in the Security Council on US policy as the key reason.
On September 20, 2020, the United States announced the reinstatement of UN sanctions on Iran. A claim that they and the remaining JCPOA parties denied. The US placed sanctions on Iranian defense leaders and nuclear scientists. they also placed sanctions on the Iranian Atomic Energy Agency. They put sanctions on anybody involved in conventional arms dealings with them the following day. The US imposed new sanctions on Iran’s banking sector on October 8, 2020. They targeted 18 Iranian banks.
Sanctions on Iran imposed by the UN
The United Nations Security Council passed a series of resolutions imposing sanctions on the country. Following the Board of Governors of the International Atomic Energy Agency’s report on its non-compliance with its safeguards agreement. The Board concluded that Iran’s nuclear activities aroused concerns within the Security Council’s jurisdiction. When the country refused to comply with the Security Council’s demand that it cease all enrichment and reprocessing activities, sanctions were imposed.
Sanctions could be withdrawn provided the country meets its demands and the standards set by the IAEA Board of Governors. Following the Joint Comprehensive Plan of Action, the majority of Iran sanctions by the United Nations were lifted on January 16, 2016.
Resolution 1696 of the UN Security Council
On July 31, 2006, it became law. The country was already told to stop enriching and reprocessing its uranium. However, the penalties were already imposed.
The UN Security Council’s Resolution 1737
On December 23, 2006, it was granted approval. As a result of the proliferation dangers posed by the country’s nuclear program. It’s a persistent failure to meet the standards of the International Atomic Energy Agency Board of Governors. They also failed to meet the provisions of Security Council Resolution 1696.
Which are significant in this context (2006). Due to constraints preventing the delivery of nuclear-related materials and equipment. Iran has been forced to suspend enrichment and reprocessing efforts. It engages with the International Atomic Energy Agency (IAEA). They also imposed a hold on the assets of key individuals and companies involved in the scheme.
Resolution 1747 of the United Nations Security Council
It was signed into law on March 24, 2007. An arms embargo was imposed, as well as a freeze on Iranian assets.
Resolution 1803 of the United Nations Security Council
It was signed into law on March 3, 2008. The asset restrictions were extended. The states were urged to keep an eye on Iranian banks’ activity. They also inspect Iranian ships and aircraft. Also to track the movement of people implicated in the program through their borders.
Resolution 1835 of the United Nations Security Council
It was signed into law in 2008. On September 27, 2008, the United Nations Security Council unanimously endorsed UN Security Council Resolution 1835. Additionally, the resolution came in response to the International Atomic Energy Agency’s (IAEA) assessment on 15 September. Which also declared that Iran had not halted uranium enrichment programs.
Resolution 1929 United Nations Security Council
On June 9, 2010, it was passed. It has been barred from any ballistic missile-related operations. The embargo on armaments was also tightened. Individuals who are a part of the program are prohibited from traveling. The Iranian Revolutionary Guard and the Islamic Republic of it Shipping Lines both had their finances and assets frozen. States should inspect Iranian shipments, the report recommended.
It makes it illegal to service Iranian ships that are engaged in illegal activity. It also prevents financial services for sensitive nuclear operations from being provided. When working with Iran, it keeps a watchful eye on individuals and entities. It forbids Iranian banks from setting up shop on their soil. It also forbids Iranian banks from forming relationships with their banks. If they might aid the country’s nuclear program. It also prohibits financial firms based in their country from establishing offices or accounts in Iran.
Resolution 1984 of the UN Security Council
On June 9, 2011, it was passed. The Iranian Sanctions Committee’s advisory panel’s mandate was extended. The extension was for another year by this resolution.
Resolution 2049 of the United Nations Security Council
It was approved on June 7, 2012. The Iran Sanctions Committee’s Panel of Experts’ mandate was extended. The extension was for another 13 months.
Resolution 2231 of the United Nations Security Council
It was signed into law on July 20, 2015. Establishes a timeline for the suspension and eventual lifting of UN sanctions. The Joint Comprehensive Plan of Action includes mechanisms to reimpose UN sanctions if the country fails to comply.
Iran’s oil exports are not included in the UN sanctions on the country. As of 2019, the Strait of Hormuz is anticipated to carry one-third of all oil traded at sea. Moreover, in an August 2018 briefing with New Zealand’s Foreign Minister Winston Peters and EU High Representative Federica Mogherini challenged US sanctions on Iran. The representative said that the EU is encouraging small and medium-sized businesses. In particular, to expand their business with and in Iran as part of a “Security Priority” for the EU.
In September 2019, the US government announced that it will begin penalizing Chinese companies. Those who purchased Iranian oil.
United Nations Security Council rejection of Resolution
On August 14, 2020, the United Nations Security Council rejected a resolution proposed by the United States. The resolution was to extend the global arms embargo against Iran. Which was set to expire on October 18, 2020. The Dominican Republic supported the resolution. They fell short of the required nine “yes” votes for it to pass. The 11 Security Council members who abstained included France, Germany, and the United Kingdom. Russia and China, on the other hand, voted against the resolution.
Conclusion
On October 18, 2020, the UN weapons embargo on Iran ended. As stipulated in the Iran nuclear deal framework. The country was then allowed to purchase foreign weapons and military equipment. 13 Security Council members objected to the United States’ proposal to extend UN sanctions against the country. It was under a JCPoA “snapback” provision. Which claims that the US had departed from the agreement with Iran in 2018.