The international community implements sanctions against Iran to discourage their development of nuclear technology. These sanctions mainly target the Iranian economy and individuals involved in Iran’s nuclear development program. Sanctions come from three major actors: the United States of America, the United Nations and the European Union. In international diplomacy, sanctions, especially economic ones, are utilized by countries or organizations to coerce, deter, punish or shame other international actors that might endanger their own interests or violate international norms of behavior. Iran has become the target of economic sanctions since they were suspected of developing uranium enrichment in violation of the Nonproliferation Treaty in 1967.
United Nations Sanctions
The United Nations led the first set of sanctions related to Iran’s development of nuclear technology. The UN adopted Resolution 1737 in 2006, which prohibited countries from transferring nuclear and missile related technology to Iran and required all countries to freeze the assets of Iranian organizations and individuals involved in Iran’s nuclear and missile programs. Sanctions were levied after Iran refused to suspend uranium enrichment activities after warnings from the International Atomic Energy Agency. The UN Security Council further expanded its sanctions against Iran in 2008 by adopting Resolution 1803, which required UN member states to actively prevent Iran from acquiring sensitive nuclear or missile technology and added thirteen people and seven entities to the UN blacklist. The additional resolution was adopted because Iran continued to oppose IAEA inspections of their nuclear facilities. In 2010, Iran, Brazil and Turkey came to a joint agreement to provide fuel for the Tehran Research Reactor. In reaction, the UN Security Council adopted Resolution 1929 which tightened proliferation-related sanctions and banned Iran from carrying out nuclear-capable ballistic missile tests. The resolution also added an arms embargo on the transfer of major weapons systems to Iran. In 2016 the UN acknowledged Iran had complied with the Joint Comprehensive Plan of Action (JCPOA) and passed a new resolution which lifted some sanctions.
European Union Sanctions
Similar to the UN, the European Union levied sanctions to prevent Iran from developing nuclear weapons. In a 2007 measure, the EU froze the assets of individuals and entities related to Iran’s nuclear and ballistic-missile programs. Further measures like visa bans, frozen assets, and actions against Iranian trade, financial services, energy and transport were implemented by the EU in 2010. The EU lifted their sanctions in 2016 when Iran signed onto the JCPOA and began adhering to those regulations.
United States Sanctions
Compared to the UN and the EU, the United States has a more complicated history of sanctions against Iran. The US began to impose sanctions on Iran in 2009 in response to then-Iranian President Mahmoud Ahmadinejad’s stated aim to build 10 uranium enrichment facilities. The U.S. House of Representatives passed sanctions on foreign companies that helped supply gasoline to Iran.
In 2011, the IAEA released a report detailing how Iran’s current nuclear program could lead to the development of a nuclear weapon. Following this report, the US designated the Government of Iran and all financial institutions in Iran as entities of money laundering concern and warned global financial institutions that doing business with Iran was risky. That same year President Obama sanctioned the Central Bank of Iran and other financial institutions for processing transactions related to oil and petroleum products on behalf of Iranian companies and the government. Despite continued talks between Iran and the international community, negotiations for an agreement fell through as both sides were unwilling to make concessions In 2012, the US signed into law the Iran Threat Reduction and Syria Human Rights Act which banned insurance, reinsurance, and other shipping services involved in nuclear proliferation. Congress further limited Iran’s oil exports and access to foreign currency reserves in 2013. President Obama added sanctions against foreign financial institutions that conducted transactions with Iranian currency or had accounts outside of Iran. When the JCPOA was implemented in 2015, the US slowly began to lift sanctions However, President Trump withdrew from the JCPOA and brought back all previous nuclear-related sanctions against Iran. Similar to the previous set of sanctions, these new sanctions were made against the Central Bank of Iran and required U.S. companies to sever contracts with Iran within 180 days.
Impact of Sanctions
Sanctions have greatly affected Iran’s economy but failed to deter Iran’s development of nuclear technology. Before the JCPOA, Iran’s GDP decreased by 20% and unemployment rose. Oil exports decreased from 2.5 mbd (thousand barrels) in 2011 to 1.1 mbd in 2014 and Iranian currency depreciated. The economic sanctions discouraged international banks and firms from engaging in commercial and financial transactions with Iran. With the return of sanctions and withdrawal from the JCPOA during the Trump presidency, similar economic consequences have impacted Iran’s economy. The reimplementation of sanctions have further damaged the oil industry in Iran with oil exports plummeting in mid-2020. Even with the new sanctions, the Iranian government refuses to slow down their nuclear development. Citing Trump’s backing out of the JCPOA, the Iran government sees the JCPOA as useless and believes it is in their right to push for higher uranium enrichment. As a result, Iran has begun to develop new centrifuges to accelerate uranium enrichment and has placed restrictions on the IAEA’s ability to inspect Iranian nuclear facilities.
