Issue Brief on “Implications of US Sanctions on Iran”

President Trump has made no secret of his dislike of the Joint Comprehensive Plan of Action (JCPOA) Iranian nuclear deal,  and when he decided to pull out of the deal, and re-impose US sanctions, he made it clear that Iran would suffer economic isolation. The new set of sanctions by US on Iran comes six months after the Trump administration quit the Iranian nuclear deal.

In May 2018, President Trump announced that US will be re-instituting the highest level of economic sanctions on Iran, and that any nation that helps Iran to develop its nuclear weapons could also be sanctioned by US.[1] The sanctions proposed by the Trump administration were put into action in two stages. First in August 2018, in which Iran was no longer able to buy US dollars, and trade in gold, as well as aluminium and steel. The second stage took effect from November 5, 2018 under which more sanctions have been be placed on Iran’s oil industry, shipping and banking sector. According to the State Department, the new sanctions will also apply to all nuclear cooperation with Iran, except for the limited activities such as its nuclear program expansion, re-designating the Atomic Energy Organization of Iran, and placing new limits on Iran’s nuclear program.[2] US furthermore, sanctioned an international network Global Vision Group a Russian based company[3], through which the Iranian regime and Russia were providing millions of barrels of oil to the Assad regime.[4]

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