The U.S. imposed a package of strict economic fines against Iran on Monday. However, the decision proved as the final blow to the Iranian nuclear agreement of 2015, which President Trump described as a disaster and opposed it since last May.
These penalties include some huge exceptions that could potentially emasculate the impact of the sanctions. Among these exceptions are that Iran’s some of the biggest customers like India and China will not be penalized for at least 6 months.
Even so, the Iranian oil, banking and shipping industries could take a crucial turn and its already troubled currency could further worsen under the sanctions, which Donald Trump has said are disciplinary measures to stop Iran’s deplorable actions in the Middle East.
Bolstered by extensive criticism of Mr. Trump’s sanctions policy, America’s warmest friends and President Hassan Rouhani of Iran responded boldly on Monday. He stated that Iran will not bow to “the language of force, pressure and threats” and swore to break free from sanctions.
Although the upshot of the confrontation remains to be unclear, experts on Iran and sanctions stated that Iran’s already striving economy will for sure feel more pressure.
Farhad R. Alavi, managing partner of the Akrivis Law Group, a Washington firm that specializes in sanctions and export law stated that, “This will make everything substantially more difficult if not impossible in some areas for Iran. Revenues are coming down and costs are going up.”
What did the United States do Monday?
The Trump administration is determined to reimpose the most arduous economic penalties on Iran that were previously lifted or eased under the agreement as discussed by the U.S. and other world powers 3 years ago.
The government intimidated to castigate buyers of Iranian oil as part of its avowed goal to bring Iran’s petroleum exports down to zero. It outlawed 50 Iranian subsidiaries and banks, more than 200 ships and people, Iran’s national airline and more than 65 Iranian aircraft.
What does Mr. Trump want from Iran?
The president challenges that the nuclear agreement had zero effect on Iran’s determination of obtaining nuclear weapons and desires the restrictions imposed by the unity to be permanent. He further wants Iran to stop supporting militant groups in Yemen, Syria and elsewhere that the U.S. regards as terrorist organizations and to abandon its ballistic missile development.
What does Iran say?
The Iranians have alleged the U.S. of treachery and violating international law for going back on and agreement it reached not just with Iran but also with 5 other major powers: Germany, Russia, Britain, France, China, and Russia. However, all of them still support the organization and its validity was confirmed by a United Nations Security Council resolution.
President Rouhani stated that Iran would break the reimpose sanctions with great pride and Iran was tied up in an economic war with the U.S.
Interrupting the message of insolence, Iran’s military testes new missiles as a part of its air defense system in a large drill hour after the sanction resumed.
Mohammed Javad Zarif, an opinionated critic of Mr. Trump’s, said the sanctions fortified what he called the growing isolation of the U.S.