The First Round of Sanctions on Iran Began with Donald Trump's Executive Order

The United States announced that it would reimpose sanctions on Iran that had been suspended due to the JCPOA. These sanctions will take effect at 8:30 AM on Tuesday, August 7, Tehran time. News agencies reported that Donald Trump, the President of the United States, signed an executive order on Monday to reinstate sanctions on Iran. In the signing ceremony, he stated that the U.S. policy is to "apply maximum economic pressure" on Iran. The U.S. President emphasized that the 2015 nuclear agreement with Iran, which lifted sanctions in exchange for curbing its nuclear program, was a "terrible and one-sided deal." Trump stated that this agreement allowed money to flow into Iran, which was used for conflicts in the Middle East. He called on all countries to "make it clear that the Iranian regime faces a choice: either change its threatening and destabilizing behavior and join the global economy, or continue down its path of economic isolation." He warned that countries that do not sever ties with Iran's economy would face "severe consequences" under the reinstated sanctions. Trump reiterated that he is still prepared to reach a comprehensive agreement with Iran that addresses a range of the regime's malign behaviors, including its ballistic missile program and support for terrorism. Meanwhile, U.S. State Department officials announced that over a hundred international companies have agreed to exit the Iranian market. They stated that U.S. sanctions would impose "severe financial pressures on the Iranian economy," but added that the goal of these pressures is not regime change but behavioral change. The sanctions set to take effect include: - Buying and selling U.S. dollar banknotes or dollar-denominated documents by the Iranian government; - Trading in gold or other precious metals by Iran; - Direct or indirect trading of graphite, raw or semi-finished metals such as aluminum and steel, coal, and software used in industrial processes by Iran; - Significant buying and selling of Iranian rials abroad, as well as opening accounts or holding significant amounts of rials outside Iran; - Access to foreign financial facilities for the Iranian government; - The Iranian automotive sector; - Trading of commercial aircraft and their parts and services; - Importing Iranian carpets and food products (pistachios) into the U.S. The announcement of the reinstatement of U.S. sanctions against Iran was met with "regret" from Federica Mogherini, the EU's foreign policy chief, and the foreign ministers of Britain, France, and Germany. According to the Associated Press, they stated that the nuclear agreement with Iran is a "vital action for Europe, the region, and the whole world." The German foreign minister stated that Germany, France, and Britain are determined to create immunity for European companies dealing with Iran through the use of blocking regulations. At the same time, the European Commission announced that the so-called "blocking regulation" will take effect at midnight on Tuesday. Under this law, compliance by European companies with U.S. sanctions will be halted unless the European Commission formally grants permission to the companies. The blocking regulation, which has never been used before, is seen by European governments as more of a political tool due to its ambiguity and difficulty in implementation, and thus is merely a warning response to the U.S. The German Chamber of Commerce and Industry, known as DIHK, announced that the announcement of U.S. sanctions against Iran has impacted German exports. Martin Wensleben, the head of DIHK, stated that many companies are halting their transactions as U.S. sanctions against Iran come into effect. He noted that despite the legality of transactions with Iran in the European Union, new banking transfers with Iran have been halted. He mentioned that German exports to Iran have decreased by 4% in the first five months of this year, while last year they had increased by 16%. Meanwhile, a senior U.S. official stated that Washington has "no particular concern" about Europe's efforts to protect its companies from the reinstated U.S. sanctions against Iran. The unnamed official told the Associated Press that "the United States is making extensive use of sanctions" and pointed out that "the severe economic collapse of Iran this year is evidence that sanctions have been effective despite opposition from the EU, China, and Russia." The U.S. President withdrew from the JCPOA on May 8 and stated that severe sanctions would be imposed on Iran. He cited Iran's missile program and interference in regional affairs as reasons for Washington's withdrawal from the agreement reached in July 2015. However, Trump has said he is ready to meet with Iranian leaders at any time to negotiate a new agreement with Tehran. The Islamic Republic has reacted negatively to this readiness.