The US government has imposed sanctions on 18 major banks in Iran after months of no interactions with Tehran. The move comes weeks after the government announced the 'snapback' of sanctions after they accused Iran of breaching the 2015 nuclear agreement. This move will likely weaken the Iranian Rial and weaken Iran foreign exchange reserves. Earlier sanctions limited Iran's oil trade and banned most commercial sales.
While the US Treasury refused to specify causes it has said sanctions were imposed on 16 of the institutions for "operating in Iran's financial sector", one for its links to an already sanctioned bank, and another for being a "military-affiliated" bank. They have also asked foreign companies that do business with these banks to cease all dealing within 45 days or face "secondary sanctions". Treasury Secretary Steven T. Mnuchin said that the sanctions issued Thursday would “continue to allow for humanitarian transactions to support the Iranian people.”
Other members of the UN security council disagree with this move as the deal was abandoned in 2018. A few weeks before the move the US attempted to unilaterally restore international economic penalties - a move that faced heavy resistance from other countries.
These sanctions come just weeks before the US elections. Iran has denounced these sanctions and their UN ambassador, Majid Takht-Ravanchi, said it was a form of "state terrorism and economic and medical terrorism... carried out through unilateral coercive measures".
This move will likely force Iran back to negotiations to limit its nuclear deal as well as end hostilities across the Middle East - isolating the US from key European allies.
Written by Anushree Appandairajan
Artwork by Zara Masood
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