What sanctions does Iran face and could they be lifted under the new deal | Explained

The interim agreement to end the conflict with Iran includes a waiver allowing certain sanctioned oil sales, but Tehran remains subject to a wide range of international restrictions affecting its trade and economic activities, Reuters reported.

For decades, Iran has faced sanctions, trade embargoes and asset freezes from the United Nations, the United States, the European Union and other countries over concerns over its nuclear program, human rights record and support for armed groups across the region.

Iran hopes to win further sanctions relief through talks on its nuclear program as the next phase of the interim deal unfolds. These are some of the sanctions against Iran, ranging from wholesale trade bans to specific rules targeting specific individuals or entities.

UN sanctions

Quick answers to key questions

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Iran faces a range of international sanctions, including trade embargoes, asset freezes and restrictions on its nuclear program and human rights violations, imposed primarily by the UN, the US and the EU.

The United States has imposed sanctions on Iran over concerns about its support for terrorist organizations, its nuclear activities, and its human rights record beginning in 1979.

UN sanctions against Iran are directly linked to its nuclear program and include restrictions, including an arms embargo and ban on nuclear-related materials, following violations of the Nuclear Non-Proliferation Treaty.

The lifting of US sanctions on Iran complicates the designation of the IRGC as a terrorist organization, and many sanctions imposed by Congress are more difficult to remove without further legislative action.

While Iran’s oil exports have faced significant restrictions, certain sanctioned sales may continue under interim agreements, but Iran remains largely isolated from the global financial system due to existing sanctions.

UN sanctions are linked to Iran’s nuclear program and assess its violation of its obligations under the Treaty on the Non-Proliferation of Nuclear Weapons.

The UN Security Council adopted resolutions imposing sanctions in 2006, 2007, 2008 and 2010.

They included an arms embargo, bans on the supply of certain nuclear materials and technologies, and asset freezes on certain companies and individuals.

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The resolutions also prohibited Iran from any activities aimed at producing ballistic missiles capable of carrying nuclear weapons.

While the resolutions froze the funds and assets of the Islamic Revolutionary Guard Corps and the state shipping company, they did not prevent the export of Iranian oil.

After the JCPOA (Joint Comprehensive Plan of Action) nuclear deal was reached in 2015, the Security Council set a timetable for lifting sanctions against Iran.

However, US President Donald Trump tore up the agreement in 2018 and Iran stopped fulfilling some of its demands. UN sanctions were reimposed last year through a “snapback” mechanism.

United States sanctions

The United States first imposed sanctions on Iran in 1979 after revolutionary students stormed the American embassy in Tehran and held American diplomats hostage. Washington has since expanded the sanctions regime, citing concerns over Iran’s support for groups it classifies as terrorist organizations and its nuclear activities, Reuters reported.

A major challenge in loosening these restrictions is the status of the Islamic Revolutionary Guard Corps (IRGC), one of Iran’s most powerful institutions with extensive influence over the country’s economy. The United States has designated the IRGC as a terrorist organization, complicating efforts to lift sanctions or normalize economic relations with Tehran.

Sanctions are administered by the US Treasury, but because they fall under different authorities and through different mechanisms, there is no quick and easy way to disable them all.

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The authority to impose sanctions stems from two laws from the 1970s that grant presidents extraordinary powers that must be renewed annually, and laws from 1996 and 2017 that specifically target Iran and other countries.

Sanctions imposed by the president through executive orders can be reversed by Trump with the stroke of a pen. These include freezing billions of dollars worth of Iranian assets, an arms embargo, a ban on all trade with and investment in Iran, and a ban on anyone buying the country’s oil.

More difficult to remove are the sanctions imposed by Congress, which did not include waivers or waivers based on Iran’s conduct in relation to human rights abuses or Tehran’s support for groups Washington considers terrorist organizations.

Many companies, individuals and government bodies are specifically targeted and it can take a long time to remove all of these.

European Union sanctions

In 2012, the European Union imposed extensive sanctions on Iran, including an embargo on Iranian oil exports, a freeze on assets belonging to the Central Bank of Iran, and restrictions on trade in precious metals and petrochemical products.

The measures also targeted Iran’s foreign trade, financial services, energy and technology sectors. As part of the sanctions regime, several Iranian banks were disconnected from the SWIFT international payment network in 2012, severely limiting Iran’s access to the global financial system and disrupting its ability to conduct international transactions, Reuters reported.

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Although some sanctions were lifted under the JCPOA, they were later reinstated. Other sanctions targeted individuals and specific components of missiles and drones.

The EU has also imposed sanctions on the IRGC and imposed new sanctions this year over Iran’s blockade of the Strait of Hormuz.

Where are Iran’s frozen assets?

Iran has tens of billions of dollars in overseas bank accounts, much of it amassed from oil and gas exports, but still cannot access most of those funds due to sanctions targeting its banking and energy sectors.

Substantial amounts of Iran’s oil revenues have been frozen in banks in several countries, including South Korea, China, Japan, Luxembourg and Iraq, leaving billions of dollars beyond Tehran’s reach.

The U.S. Treasury Department sanctions Lebanese officials and others for supporting Hezbollah

The US government on Thursday imposed sanctions on several Lebanese officials it accused of supporting Hezbollah, along with people linked to the sanctioned Alaa Hassan Hamieh business network, Reuters reported.

Washington said the measures were taken over alleged efforts to undermine Lebanon’s peace process and delay Hezbollah’s disarmament.

The U.S. Treasury Department said its Office of Foreign Assets Control also named individuals in Lebanon, Syria, Iraq and Oman who it said raised funds and operated front companies to generate revenue for Hezbollah, an Iran-backed militant group, Reuters reported.

(With inputs from Reuters)