Daily Times

The United States on Monday has re-imposed the first round of Iranian trade sanctions that had been suspended under the 2015 nuclear accord, increasing the divide with Europe and ratcheting pressure on Tehran.

In background calls to reporters, senior U.S. officials said the sanctions that have been waived for the past two-and-a half years will stand reimposed on Tuesday morning. From that time onwards, Iran will be prohibited from using U.S. currency – the primary currency used for international financial transactions and oil purchases. Permits that allow the import of Iranian food and carpets will be revoked, as will licenses that have allowed Tehran to buy U.S. and European aircraft and parts – this restriction comes only days after Iran completed the acquisition of five new commercial planes from Europe. Iranian trade in metals and sales of Iranian-made cars will also be banned.

Explaining the move, the officials said that United States President Donald Trump has several goals in re-imposing sanctions: to urge Iran to renegotiate the nuclear agreement, address Iran’s ballistic missile tests and other such activities in the region, and to change the Irannian government’s behaviour. They asserted the United States was supporting Iranian protesters, who in recent weeks had demonstrated their disappointment with a faltering economy, social issues, and the incumbent regime.

The U.S. officials insisted, the President is not seeking to encourage Iranians to rise up or push for a change in government. They are merely looking for a change in behaviour from Tehran. They stressed the threat of new sanctions has already impacted the Iranian economy – the value of the rial has plunged in recent weeks. With rising unemployment and increasing protests, the country is experiencing turbulence.

“The president has been very clear,” one official highlighted. “None of this needs to happen … The Iranian people should not suffer because of their regime’s hegemonic ambitions.”

There has been no immediate reaction from Iran, however, some Iranian officials have said the U.S. breach of its commitments under the deal allowed them to resume suspended elements of their nuclear programme.

The European Union and U.S. allies Germany, France and Britain announced a “blocking statute” to protect European companies, it will take effect on Tuesday and will attempt to nullify U.S. legal action against European firms doing business with Iran.

A joint statement said, “We are determined to protect European economic operators engaged in legitimate business with Iran, in accordance with EU law.”

However, officials dismissed the European action, stating that over 100 major businesses had already announced their intention to withdraw from Iran ahead of the re-imposition of the sanctions. Trump’s administration set a series of deadlines several months ago, to forewarn countries and private businesses trading in Iran to prepare their withdrawal.

The long-anticipated sanctions follow Trump’s announcement to abandon the landmark 2015, agreement, negotiated between then U.S. President Barack Obama and five other countries. Under the agreement, the U.S. suspended international sanctions in exchange for Iran agreeing to curb its nuclear programme. Iran’s sluggish economy will be heavily hit again on November 4, when sanctions on the Iran’s major export – petroleum, are reinstated.

The officials said they aimed to garner more international support for their action against Iran in the coming months; they promised to remain unrelenting of sanctions, despite Tehran’s disagreement with the U.S. policy.

Published in Daily Times, August 7^th 2018.