United States economic sanctions on Iran snapped back into place on Monday, precisely as President Donald Trump warned would happen if the Islamic Republic did not comply with mandates outlined by the United Nations Security Council, and those specified in the Joint Comprehensive Plan of Action (JCPOA) signed by Tehran with world leaders in the summer of 2015.
Prime Minister Benjamin Netanyahu applauded the president Monday on having made the decision to move ahead with the sanctions. “I congratulate President Trump and the U.S. administration for making the important decision to impose sanctions on Iran,” Netanyahu wrote on his official Twitter feed. “This is an important moment for Israel, the U.S., the region and the entire world.”
Likewise, Defense Minister Avigdor Liberman also praised Trump, saying he made “a brave decision that will be remembered for generations. U.S. President Donald Trump has changed the direction in the treatment of Iran,” he said. “No more agreements and flattery, but a determined struggle until the murderous ayatollah regime, which spreads terrorism, violence and hatred across the Middle East, is stopped.”
The initial sanctions include the termination of transactions between U.S. and international firms and Iran; an end to Iran’s ability to access U.S. dollars and to attract investment to it aviation and auto industries; and barriers to transacting in gold, precious metals and commodities such as graphite and certain types of aluminum and steel.
Sanctions to follow in 90 days are to include measures that will have a more direct impact on the Iranian economy, including sanctions on Iran’s automotive and civil aviation sectors, according to CNBC, which said both are major employers in the country after the energy industry.
Former U.S. Senator Joseph Liberman of Connecticut, chairman of “United Against Nuclear Iran,” told Fox News on Sunday that he hoped the move would force Tehran back to the negotiating table.
“Today the United States is taking action to reimpose nuclear-related sanctions with respect to Iran that were lifted in connection with the Joint Comprehensive Plan of Action,” Trump said in a statement. “These actions include reimposing sanctions on Iran’s automotive sector and on its trade in gold and precious metals, as well as sanctions related to the Iranian rial. These measures will take effect on August 7, 2018.”
All remaining United States nuclear-related sanctions will resume effective November 5, 2018. These include sanctions targeting Iran’s energy sector, including petroleum-related sanctions, as well as transactions by foreign financial institutions with the Central Bank of Iran.
“The United States is fully committed to enforcing all of our sanctions, and we will work closely with nations conducting business with Iran to ensure complete compliance,” Trump continued. “Individuals or entitles that fail to wind down activities with Iran risk severe consequences.”
Thus far, sanctions have forced European firms to suspend investments in the Iranian market; likewise, Boeing has lost a $20 billion deal to sell aircraft to Iran, and Airbus is also about to lose a similar group of orders, worth billions as well.
Iran can still stay afloat by maintaining warm business ties with non-European trading partners such as China, India, Turkey and so forth; but American banking connections will play a large part in determining who and how much business is transacted with Iran worldwide.