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Home»Iran»US Sanctions on Iran and Their Economic Impact – OpEd – Eurasia Review
Iran

US Sanctions on Iran and Their Economic Impact – OpEd – Eurasia Review

R innissBy R innissDecember 29, 2022No Comments5 Mins Read
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Since the Iranian Revolution of 1979, the United States and Iran have been hostile, including diplomatically. This has been due to hostage crises, proxy wars, and Iranian actions including support for non-state actors such as Hamas and Hezbollah. Relations between the two countries have also been strained due to Washington’s actions, including its support for Saddam Hussein’s attack on Iran. , developed relations with several European countries, including China and India. They discussed the oil and gas deal. However, relations between the United States and Iran remained tense and hostile. US oil companies were barred from profitable oil trading, and the Bush administration designated Iran as part of the “axis of evil.”

In addition, Iran’s nuclear program has also affected relations between the two countries. Iran says its nuclear program is for peaceful purposes, and he claims the IAEA allows states to possess nuclear weapons for peaceful purposes. Meanwhile, the United States has imposed sanctions on Iran that affect its economy, and as a result of these sanctions, Iran has been unable to establish hegemony in the region.

The Joint Comprehensive Action Plan, also known as the Iran Nuclear Deal or the Iran Accord, was signed by Iran and P5+1 (the five permanent members of the United Nations Security Council, China, France and Russia, agreed in Vienna on July 14, 2015). jointly agreed with the United Kingdom, and the United States (and Germany), with the European Union, 5%, there will be no further progress on Arak’s improved plants and heavy water reactors, no new improvements to go back to the office or No new taxes and the number of existing rotators has been reduced by 66% The IAEA can now investigate government offices announced as undeclared Iran’s nuclear energy Production network and access to all uranium mines and manufacturing plants.

The rivalry between the two countries has become even more serious under the Trump administration. In 2018, President Trump withdrew from the Joint Comprehensive Plan of Action (JCPOA) and the Iranian economy has suffered from severe economic sanctions. Trump tweeted in July 2019 that Iran was at fault for shooting down a US military surveillance drone that entered its airspace on June 20, 2019.

Furthermore, Trump claimed that the JCPOA agreement was unilateral and that no deal was reached. Trump also called for tougher sanctions on Iran. The US has used unilateral sanctions to undermine Iran for its nuclear weapons program. Sanctions against Iran have affected and heightened tensions across the Middle East. Trump’s goal was to stop Iran’s nuclear program.

US sanctions initially targeted investments in the oil, gas and petrochemical industries, trade with the Islamic Revolutionary Guard Corps, and exports of refined petroleum products (IRGC). It included banking and insurance operations, domain name registration, web hosting for corporate endeavors, and shipping (including the Central Bank of Iran). Subsequent UN resolutions tightened sanctions against Iran.

Iran’s economy is collapsing after years of US sanctions, and Tehran says Washington must suspend those restrictions before the two countries return to nuclear talks. Iran’s economy contracted by an estimated 4.99% in 2020 and has contracted steadily since 2017. The Islamic Republic’s economy surged by 12.5% ​​in 2016 after the nuclear deal was signed. But the grace period was only for a short time.

The Biden administration had claimed and expressed its willingness to rejoin the JCPOA to remove mistrust and normalize US-Iran relations. Biden has consistently pledged throughout his campaign to rejoin the Iran nuclear deal that President Obama signed into his 2015 and President Trump abandoned his 2018. In his op-ed in September 2020, Biden said: , the United States will rejoin the agreement as a starting point for subsequent negotiations…. We will seek to strengthen and expand the parameters of the nuclear deal with our partners while also addressing other pressing issues. “

From all these factors, it can be inferred that mistrust and conflicting interests strained relations between the two nations, and that the two nations used their resources to oppose each other to protect their own national interests. However, in the Middle East, the two powers are vying for supremacy under the influence of “aggressive realism.” However, Iran appears to be successful in this effort as it pursues nuclear power. Iran has a reputation for being overconfident and insecure, and has long tried to defend itself against potential foreign inventions and interference. Opposition to Iran acquiring nuclear weapons is more defensive than offensive. It poses a challenge to Israel, the long-established hegemonic power in the region. The best course of action for the United States and its allies is to continue negotiations, maintain contact with Iran, and ensure that the West is familiar with and understands the Iranian nuclear power concept. But sanctions generally unsettle locals and pose little threat to a growing Iranian program, so they should be eased.

Sughra Jan Muhammad graduated in International Relations from the University of Balochistan, Quetta.



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