International sanctions against Iran
There have been a number of international sanctions against Iran imposed by a number of countries, especially the United States, and international entities. Iran was the most sanctioned country in the world until it was surpassed by Russia, following Russia's invasion of neighboring Ukraine in February 2022.[1]
The first sanctions were imposed by the United States in November 1979,[2] after a group of radical students seized the American Embassy in Tehran and took hostages. These sanctions were lifted in January 1981 after the hostages were released, but they were reimposed by the United States in 1987 in response to Iran's actions from 1981 to 1987 against the U.S. and vessels of other countries in the Persian Gulf and US claims of Iranian support for terrorism.[3] The sanctions were expanded in 1995 to include firms dealing with the Iranian government.[4]
The third sanctions were imposed in December 2006 pursuant to United Nations Security Council Resolution 1737 after Iran refused to comply with United Nations Security Council Resolution 1696, which demanded that Iran halt its uranium enrichment program. Initially, U.S. sanctions targeted investments in oil, gas, and petrochemicals, exports of refined petroleum products, and business dealings with the Islamic Revolutionary Guard Corps (IRGC). It encompassed banking and insurance transactions (including with the Central Bank of Iran), shipping, web-hosting services for commercial endeavors, and domain name registration services.[5] Subsequent UN Resolutions have expanded sanctions against Iran.
Over the years, sanctions have taken a serious toll on Iran's economy and people. Since 1979, the United States has led international efforts to use sanctions to influence Iran's policies,[6] including Iran's uranium enrichment program, which Western governments fear is intended for developing the capability to produce nuclear weapons. Iran counters that its nuclear program is for civilian purposes, including generating electricity and medical purposes.[7]
When nuclear talks between Iran and Western governments were stalled and seen as a failure, U.S. senators cited them as a reason to enforce stronger economic sanctions on Iran.[8] On 2 April 2015, the P5+1 and Iran, meeting in Lausanne, Switzerland, reached a provisional agreement on a framework that, once finalized and implemented, would lift most of the sanctions in exchange for limits on Iran's nuclear programs extending for at least ten years.[9][10][11][12] The final agreement, the Joint Comprehensive Plan of Action, was adopted on 18 October 2015.[13] As a result, UN sanctions were lifted on 16 January 2016.[14] On 8 May 2018, U.S. President Donald Trump announced that the United States would withdraw from the Iran nuclear deal. Sanctions by the United States were reinstated in November 2018, and expanded in 2019 and 2020 to cover Iran's financial sector. Temporary waivers were granted to some countries to continue importing reduced amounts of oil from Iran until 2019.
On 21 February 2020, Iran was placed on the FATF blacklist.[15]
The UN arms embargo on Iran expired on 18 October 2020, as agreed in Iran's 2015 nuclear deal, allowing Iran to import foreign military equipment.
Sanctions of 1979[edit]
The United States sanctions against Iran were imposed in November 1979 after radical students seized the American Embassy in Tehran and took hostages. The sanctions were imposed by Executive Order 12170, which included freezing about $8.1 billion in Iranian assets, including bank deposits, gold and other properties, and a trade embargo. The sanctions were lifted in January 1981 as part of the Algiers Accords, which was a negotiated settlement of the hostages' release.[16]
UK sanctions against Iran[edit]
In July 2023, British Foreign Secretary James Cleverly announced that his government had decided to create a new sanctions regime for Iran, which will expand the United Kingdom's powers to sanction decision-makers in Tehran to include those allegedly involved in weapons proliferation.[32] This decision could be motivated a number of different factors, such as Iran recently being accepted as a full member of the Shanghai Cooperation Organisation (SCO).[33]
The UN Security Council passed a number of resolutions imposing sanctions on Iran, following the report by the International Atomic Energy Agency Board of Governors regarding Iran's non-compliance with its safeguards agreement and the Board's finding that Iran's nuclear activities raised questions within the competency of the Security Council. Sanctions were first imposed when Iran rejected the Security Council's demand that Iran suspend all enrichment-related and reprocessing activities. Sanctions will be lifted when Iran meets those demands and fulfills the requirements of the IAEA Board of Governors. Most UN sanctions were lifted on 16 January 2016, following the Joint Comprehensive Plan of Action.
The UN sanctions against Iran do not include oil exports from Iran.[36] As of 2019, an estimated one third of all oil traded at sea passes through the Strait of Hormuz. In August 2018, EU High Representative Mogherini, speaking at a briefing with New Zealand's Foreign Minister Winston Peters, challenged U.S. sanctions on Iran, stating that the EU are encouraging small and medium size enterprises in particular to increase business with and in Iran as part of something that is for the EU a "Security Priority".[37][38]
In September 2019, the US government announced, unilaterally, that it would begin to sanction certain Chinese entities that imported oil from Iran.[39]
On 14 August 2020, the United Nations Security Council rejected a resolution proposed by the United States to extend the global arms embargo on Iran, which was set to expire on 18 October 2020. The Dominican Republic joined the United States in voting for the resolution, short of the minimum nine "yes" votes required for adoption. Eleven members of the Security Council, including France, Germany, and the United Kingdom, abstained while Russia and China voted against the resolution.[40]
Speaking about the US desire to restore UN sanctions against Iran and extend an embargo to arms sales to the country in 2020, US Ambassador to the United Nations Kelly Craft said: "History is replete of tragedies of appeasing regimes such as this one, that for decades have kept its own people under its thumb. The Trump administration has no fear in standing in limited company on this matter, in light of the unmistakable truth guiding our actions. I only regret that other members of this [Security Council] have lost their way, and now find themselves standing in the company of terrorists."[41] She also wrote a September 20, 2020, letter to the President of the UN Security Council, pressing her point on sanctions.[42][43][44] Speaking at the US State Department in September 2020, she said: "As we have in the past, we will stand alone to protect peace and security at all times. We don't need a cheering section to validate our moral compass."[43]
Under the terms agreed in the Iran nuclear deal framework, the UN arms embargo expired on 18 October 2020, following which Iran was permitted to purchase foreign weapons and military equipment.[45] A U.S. attempt to extend UN sanctions against Iran under a JCPoA "snapback" provision was opposed by 13 Security Council members, who argued that the U.S. left the agreement with Iran in 2018.[46]
The European Union has imposed restrictions on cooperation with Iran in foreign trade, financial services, energy sectors and technologies, and banned the provision of insurance and reinsurance by insurers in member states to Iran and Iranian-owned companies.[50] On 23 January 2012, the EU agreed to an oil embargo on Iran, effective from July, and to freeze the assets of Iran's central bank.[61] The next month, Iran symbolically pre-empted the embargo by ceasing sales to Britain and France (both countries had already almost eliminated their reliance on Iranian oil, and Europe as a whole had nearly halved its Iranian imports), though some Iranian politicians called for an immediate sales halt to all EU states, so as to hurt countries like Greece, Spain and Italy who were yet to find alternative sources.[62][63]
On 17 March 2012, all Iranian banks identified as institutions in breach of EU sanctions were disconnected from the SWIFT, the world's hub of electronic financial transactions.[64]
On 10 November 2018 Gottfried Leibbrandt, chief executive of SWIFT said in Belgium that some banks in Iran would be disconnected from this financial messaging service.[65]
One side effect of the sanctions is that the global shipping insurers based in London are unable to provide cover for items as far afield as Japanese shipments of Iranian liquefied petroleum gas to South Korea.[66]
Legal challenges to the sanctions[edit]
The European Union's General Court overturned EU sanctions against two of Iran's biggest banks, Bank Saderat and Bank Mellat. The two banks had filed suit with the European court to challenge those sanctions.