US Sanctions on Iran have weighed heavily on Iran's economy and people over the years. Since 1979, the US has spearheaded international attempts to use sanctions to influence Iran's policies, notably Iran's uranium enrichment program, which Western nations worry is being used to acquire nuclear weapons capability.
Iran replies that its nuclear program is for civilian uses, such as power generation and medical treatment.
History of US Sanctions on Iran
During 1978 and 1979, a sequence of events in Iran brought in the Islamic Revolution, also known as the Iranian Revolution. After many students seized command of the American Embassy in Tehran and held the people inside hostage, the US imposed sanctions on Iran for the first time in 1979.
Iran's assets were frozen to USD 12 billion as part of the sanctions (gold deposits, bank deposits, etc.) The embargo on trade. As part of the Algiers Accord, these restrictions were lifted in 1981.
In 1987, the United States reimposed sanctions after Iran took action against US container ships in the Persian Gulf. The US also opposed Iran's funding for non-state armed groups like Hezbollah and Hamas.
US Sanctions on Iran Facts
- The Atomic Energy Agency (IAEA) announced in January 2016 that Iran had effectively eliminated its nuclear weapons program, allowing the UN to lift sanctions immediately.
- They came to an agreement that would lift most US Sanctions on Iran, and UN sanctions against Iran were withdrawn in 2016. This was referred to as the Iran Nuclear Deal or the JCPOA.
- The US pulled from the agreement in 2018 to compel Iran to change its policies, including sponsoring militancy in West Asia and building ballistic missiles.
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Recent Developments after US Sanctions on Iran
- The United States pulled out of the Joint Comprehensive Plan of Action, reimposing sanctions on Iran in 2018.
- The US Sanctions on Iran have severely harmed the Iranian economy.
- Other signatories to the agreement (the United Kingdom, China, Russia, Germany, and France) have been unable to ease the economic impact of US sanctions against Iran.
- Many international corporations fled from the country after the US withdrew, fearing retaliation from the US.
- Iranians could not trade freely in the international market for many decades. Inflation has been increasing.
- France, Germany, and the United Kingdom formed INSTEX, a new payment route to get around the US's new prohibitions.
- Patients suffered the most as a result of the punishments. Sanctions do not apply to medical devices or pharmaceuticals, and Iran's inability to access international payment networks has led to serious drug scarcity.
- The United States signed the Iran Deal during the Obama administration. The JCPOA was overseen after a power shift, i.e., after Donald Trump was elected President of the United States.
US Sanctions on Iran - Iran Deal aided the Iranian economy
- Iran's frozen assets in other countries have been released.
- Sanctions against Iran's oil exports have been eased.
- Foreign companies can now invest in Iran's oil and gas, hotels, vehicles, and other industries.
- Allows Iran to conduct international trade through global financial networks such as SWIFT.
US Sanctions on Iran - After Effects on India
- After Iraq and Saudi Arabia, Iran is India's third major oil supplier. Though India has been granted a reprieve from sanctions, the oil price on global markets may rise, boosting India's import cost.
- The US Sanctions on Iran will also influence India's strategic interests in Iran.
- India has invested in the Chabahar port and the International North-South Transport Corridor.
Sanctions implemented by the UN, the US, and other countries have significantly impacted the Iranian economy. Several countries stopped spending heavily on Iran since the US had issues with anyone interacting with the country.
FAQs on US Sanctions on Iran
Q1. What is the meaning of the Iran Nuclear Deal or the JCPOA implemented in the US Sanctions on Iran?
Authorities came to an agreement that would lift most US Sanctions on Iran, and UN sanctions against Iran were withdrawn in 2016. This was referred to as the Iran Nuclear Deal or the JCPOA.
Q2. What was the effect on India after US Sanctions on Iran?
After Iraq and Saudi Arabia, Iran is India's third major oil supplier. Though India has been granted a reprieve from sanctions, the oil price on global markets may rise, boosting India's import cost. This was a major effect on India after US Sanctions on Iran.
Q3. In which ports did India invest after the US Sanctions on Iran?
After the US Sanctions on Iran, India has invested in the Chabahar port and the International North-South Transport Corridor.
Q4. Will US Sanctions on Iran affect India's strategic interests?
Yes, US Sanctions on Iran will influence India's strategic interests in Iran.