Donor Matching Funds Announced!

A generous donor has offered to match all contributions dollar-for-dollar for the next $10,000 raised, doubling the impact of your donation and helping us reach our fundraising goal faster.

$17,360 of $60,000 raised

Iran Sanctions Aren’t Just Counterproductive, They’re an Act of War

by | Aug 8, 2018

Iran Sanctions Aren’t Just Counterproductive, They’re an Act of War

by | Aug 8, 2018

Having unilaterally stepped out of the Iran nuclear deal in May, the Trump administration reimposed sanctions on the Islamic Republic earlier this week, part of another so-called “maximum pressure” campaign.

The new sanctions will target Iran’s purchases of U.S. dollars, precious metals trading, industrial software, Iran’s coal industry and its automotive sector. Sanctions on Iran’s oil industry are also set to begin in November.

All of the above is sure to inflict pain on Iran’s civilian population.

Indeed, that is a common intended effect of sanctions: to impose suffering on civilians in hopes they will pressure their own government to comply with American demands.

Not only does such an economic offensive amount to an act of war, the idea that sanctions will spur citizens to action is not borne out in practice, especially in Iran. The more likely result is to inspire a siege mentality in the populace—who instead view their leaders as their protectors—while also reinforcing hatred for the West.

Iraqi Prime Minister Haider al-Abadi put it well in a recent press conference: “[S]anctions destroy societies and do not weaken regimes.”

Speaking of Iraq, consider the sanctions imposed on that country under the Clinton administration. Though they were “worth it” in the well-known words of an American diplomat, they also killed hundreds of thousands of people. Those sanctions didn’t just fail to provoke Iraqis to overthrow Saddam Hussein, they inspired hatred for the United States the world over (including in the mind of Osama bin Laden, who used this stain on America’s record as a propaganda device).

Using sanctions to bully Iran’s citizenry, then, is not a viable strategy.

The new round of sanctions is also unlikely to accomplish the administration’s more immediate goal: bringing Iran back to the negotiation table.

Trump’s unilateral withdrawal from the JCPOA can only be taken by Iranian leadership as the deepest insult, the greatest sign of bad faith. Iranian President Hassan Rouhani, long a major backer of the deal, has drawn a hard line in the sand, stating that Iran will not negotiate as long as the US continues to violate the terms of the deal reached in 2015.

Resistance from Abroad

A handful of world powers, among them US allies, are chafing against the renewed sanctions. With the obvious exception of the US, the P5+1 states (France, UK, China, Russia, plus Germany) insist they’re sticking to the nuclear deal. Compliance with American sanctions in this case would amount to a violation of the deal on the behalf of the other signatories, as the normalization of trade relations is one of the JCPOA’s terms.

China, Iran’s biggest oil customer, recently reaffirmed its position that it would not go along with the sanctions, a major damper on Washington’s aims. Because there’s not a huge amount of US-Iranian business to cut off in the first place, to achieve the intended effect the US must pressure other countries into halting trade.

The EU is pushing back, too. In May, soon after Trump pulled out of the JCPOA, the foreign ministers of France, Germany, Britain and Iran were already working on what they called a “nine-point plan” to keep Iran in from the cold.

EU officials are also working to update a statute known as the “Blocking Regulation,” which was initially drawn up in 1996 to prohibit institutions under EU jurisdiction from complying with American secondary sanctions related to Cuba.

Primary sanctions include the freezing of assets, restrictions on US citizens from doing business with the sanctioned entity, or outright trade embargoes. Secondary sanctions, on the other hand, involve pressuring allies to stop doing business with the country in question. Companies that fail to go along are cut off from the American financial system.

For European businesses, that threat could prove more compelling than the Blocking Regulation itself. Companies may simply avoid the regulation and comply with the sanctions for the sake of staying in the good graces of US finance.

Earlier this week President Trump promised worldwide secondary sanctions for anybody who continued dealings with Iran, which puts European companies between a rock and a hard place.

Several large European firms have already announced they’d be getting out of Iran due to the sanctions:

A French shipping company (CMA CGM), two French car manufacturers (PSA and Renault), and a French oil company (Total) have ceased operations and investments in Iran. The same goes for a large Danish shipping firm (Maersk) and a German auto company (Daimler).

SWIFT

Of particular importance for Iranian trade relations is the Society for Worldwide Interbank Financial Telecommunication, or SWIFT, an institution that facilitates financial transactions across borders between several different countries.

SWIFT is based in Belgium and resides under the jurisdiction of the EU. Going forward, it’s crucial that the EU keeps that organization from complying with American demands, which would cripple Iran’s ability to do business internationally.

There is a possibility that the Trump administration could impose sanctions on SWIFT itself, but the costs of interfering with such a significant institution may be prohibitively high.

Given the staunch resistance offered by the P5+1 nations, as well as a few unlikely dissidents, it remains to be seen what kind of teeth the new round of sanctions will have. Beyond dispute, however, are very real tensions growing between the US and its imperial satellites in Europe, a welcomed silver lining in an otherwise dismal situation.

Will Porter

Will Porter

Will Porter is assistant news editor at the Libertarian Institute and a regular contributor at Antiwar.com. Find more of his work at Consortium News, ZeroHedge and RT.

View all posts

Our Books

libertarian inst books

Related Articles

Related

TGIF: Damn Consumers!

TGIF: Damn Consumers!

Global free trade is about individual, not national, freedom—for consumers and producers who import raw materials, tools, and semi-finished products. Aside from its role as an aspect of personal liberty, free trade's efficiency benefits have been well-established...

read more
You Don’t Want to Get Out of Line…

You Don’t Want to Get Out of Line…

The fallout from the failed assassination attempt on former President Donald Trump during a rally in Butler, Pennsylvania continues. Speculation abounds that it was an “inside job,” the head of the Secret Service became “embattled” and resigned, and the assassin’s...

read more
Black Magic, Mad Science, and Super-Nazis

Black Magic, Mad Science, and Super-Nazis

On a London soundstage in 1987, a British pop star is filming a music video when he is interrupted by a visitor who has what he considers an insane request: You’re asking me to help you because Nazis from another dimension are trying to take over the world and only...

read more
America’s Palace Coup

America’s Palace Coup

On Sunday, July 21 at around 1:30pm Eastern time someone with access to President Joe Biden’s social media accounts posted that he was dropping out of the presidential election. The announcement was not on any form of official stationary and the signature was...

read more
Biden’s Blather and American Democracy Gone Awry

Biden’s Blather and American Democracy Gone Awry

Since late 2020, President Joe Biden has invoked “the will of the people” dozens of times to sanctify his power, including arbitrary decrees that were illegal or unconstitutional. Biden’s invocations did not prevent his re-election campaign from being terminated...

read more

Pin It on Pinterest

Share This