Iran V: Sanctions
March 13, 2012
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Source: Adapted from DOE/EIA, “Iran, Country Analysis,” February 17, 2012, pp. 6; Oil and Gas Journal
The Sanctions Game These vulnerabilities in Iran’s economic capacity to export explain why sanctions, and related diplomatic efforts, have become a key instrument for the US and its allies in competing with Iranian ambitions. The history of sanctions is complex, their exact impact is often impossible to measure or controversial, and their ultimate success remains uncertain. However, even a brief survey of the patterns in this aspect of US and Iranian competition does show that sanctions have already put serious pressures on Iran — pressures compounded by the economic policies and mistakes of the Iranian regime, despite Iranian claims to the contrary. Moreover, the history of sanctions shows they have forced Iran to shift its strategy. Iran has responded by trying to leverage its international economic position through its energy exports, by talking about its right to peaceful nuclear programs, and by trying to exploit Arab-Israel tensions to shift the focus to Israel and away from the threat Iran’s actions pose to Arab states.
US Unilateral Sanctions – A Brief Background As Figure V.6 shows, sanctions have been the main diplomatic weapon utilized by the US in competing with Iran across a broad spectrum of issues ever since the overthrow of the Shah. Washington has imposed a growing range of sanctions on Tehran, and these sanctions have focused on Iranian activities ranging from petroleum exports and investments to arms control and non-proliferation measures. They now block US companies from operating in Iran and give the US a strong incentive to block US firms' foreign competitors from operating there as well. And while their aim has been broad, they have all sought to push the current Iranian regime into changing its behavior by isolating it politically and economically from the international community. Sanctions: 1980-2009 The first major period of US sanctions began in 1979. US and Iranian relations deteriorated sharply following the Islamic Revolution and after November’s hostage crisis. In response, President Carter laid out a series of economic sanctions that were intended both to punish Tehran and to change its behavior.44 The Reagan Administration continued this trend and declared Iran “a sponsor of international terrorism,” making Iran ineligible for various forms of US foreign assistance.45 Reagan also prohibited Iran from receiving US arms under the US Arms Export Control Act,46 and by
44
Sabatini, Richard, “Economic Sanctions: Pressuring Iran’s Nuclear Program,” Monterey Institute for International Studies, Nuclear Threat Initiative, June 24, 2010, http://www.nti.org. 45 Sabatini, Richard, “Economic Sanctions: Pressuring Iran’s Nuclear Program,” Monterey Institute for International Studies, Nuclear Threat Initiative, June 24, 2010, http://www.nti.org/e_research/e3_economic_sanctions_pressuring_iran_nuclear_program.html#fn1 46 The Arms Export Control Act, US Department of State. http://www.pmddtc.state.gov/regulations_laws/aeca.html
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