The U.S. Restores Sanctions on Iran, Deepens Division with Europe
Iran in Hot Water as the U.S. Restores the Economic Sanctions Against Iran

Trump administration is hellbent on shutting down the nuclear enrichment efforts of Iran, curbing its support of brutal governments or uprisings in the Middle East and ending its weapons program.

In his statement, Trump said that the Iranian Government “faces a choice: Either change its threatening, destabilizing behavior and reintegrate with the global economy or continue down a path of economic isolation.”

The sanctions further forbid any kind of transactions with Iran including United States gold, dollar bank notes, aluminum, precious metals, coal, and commercial passenger aircraft. As for Iran, it ends the imports into the U.S. of Iranian foodstuffs and carpets.

The foreign ministers of France, Britain, Germany, and the European Union said in a joint statement, “We are determined to protect European economic operators engaged in legitimate business with Iran.”

Daimler, the German maker of Mercedes-Benz cars and trucks, said in a statement on Monday, “We have suspended our activities in Iran, which were anyway very limited, until further notice according to applicable sanctions.”

Mr. Zarif, President of Iran tweeted on Monday stating, “US hypocrisy knows no bounds. They want the world to believe it’s concerned about the Iranian people.”

The current deal also prevents Iran from accruing fuel sufficient to build a nuclear weapon till 2030, which according to the U.S. President is not long enough.

Secretary of State Mike Pompeo outlined a strategy for opening new negotiations with Iran, merely two weeks after the United States took a backfoot from the deal.

Trump administration has demanded the end of all nuclear development and enrichment of nuclear-capable missiles, withdraw its forces from Syria, end its support for Hamas, Houthi militias, Islamic Jihad, and Hezbollah.

The senior administration officials noticed the threat of sanctions had already started on the Iranian economy with growing unemployment, plunge in the value of the rial, Iran’s currency, and growing protests. They (senior officials) were not demanding a change in government, but they wanted a change in behavior from Tehran.

A so-called blocking statute was uploaded by The European Union on Monday seeking to protect European companies from the penalties imposed by the U.S. for doing business in, or with Iran. If the companies fail to abide by the American sanctions, they are likely to face penalties.

Regardless of European concerns, the top American officials on Monday guaranteed to commence solid enforcement of the reinstated penalties against Iran and would further continue communicating with foreign equivalents to aid on sanctions. Ahead of the sanctions, more than 100 major businesses had already declared their intention to leave Iran.

Jacob Funk Kierkegaard, a senior fellow at the Peterson Institute for International Economics in Washington stated, “I can’t imagine that happening. The idea that the European Commission would come after Siemens or Total for not doing business in Iran is legally dubious and politically very tricky.”

Some European leaders have quietly taken actions to comply, while the others pressed on to resist the sanctions.

The tougher round of sanctions is programmed to come into effect in November, including Iran’s transactions with its Central Bank and its sale of crude oil.

Europe could undertake the provocative step of instructing state-owned banks and energy companies — which are largely insulated from American penalties — to do business with Iran.

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