The first round of sanctions was reimposed last week and many international companies have pulled out of Iran, or announced that they would pull out prior to the final round of sanctions in November. The November sanctions target Iran’s oil exports, which will be the thing most likely to damage their already failing economy and that also have the potential to affect global oil supply.
These sanctions against Iran from the US are the most stringent, since before the JCPOA was signed. Between 2012 and 2016, the UN, US, and EU all imposed sanctions on Iran that devastated the economy and cost the country over $160bn in oil revenue.
Trump plans to enforce sanctions in order to bring the mullahs back to the negotiating table for a better deal that addresses all of their malign behaviour, but this could have the side effect of allowing the people of Iran to take over while the mullahs are weak.
The August sanctions focus on preventing Iran from buying or acquiring US dollars, trading in gold and other precious metals, selling, supplying, or trading metals and other goods that could be used to integrate industrial processes, as well as preventing those outside Iran from issuing Iranian debt or buying/keeping a large amount of Iranian rials.
The November sanctions will focus on limiting Iran’s shipping sectors, limiting financial services to Iran (i.e. transacting with the Central Bank of Iran, providing insurance) and preventing others from buying Iranian petroleum and petrochemical products.
Ever since the announcement of sanctions, many companies have pulled out of Iran, including Daimler, Peugeot, Total, General Electric, Siemens, Boeing, and Maersk, despite the losses the they will face on capital already invested and potential sanctions from the EU in response. This is the right thing for businesses to do financially, but more importantly it is the moral thing for them to do.
Putting pressure on the rogue regime could force the mullahs to address their severe problems, including foreign interventionism, human rights abuses, and ballistic missiles programmes, but it could also allow for regime change in Iran, which would fix all of the problems created by the Regime.