U.S. Treasury Announces Reinstatement of Sanctions Against Iran After 90 and 180-Day Periods

Following Donald Trump's decision to withdraw the U.S. from the JCPOA, the U.S. Treasury Department announced on Tuesday, May 8, that a wide range of sanctions against Iran, including oil sanctions and sanctions against the Central Bank, would be implemented over a 90 to 180-day period. After months of anticipation and speculation regarding the fate of the Joint Comprehensive Plan of Action (JCPOA), President Donald Trump announced the U.S. position on the Iran nuclear deal. Trump stated that the U.S. would exit the JCPOA and reinstate suspended sanctions against Iran. In this context, U.S. Treasury Secretary Steve Mnuchin stated in a statement that President Trump today announced his decision to end U.S. participation in the JCPOA and to begin reinstating nuclear sanctions against the Iranian government. Mnuchin added that the Office of Foreign Assets Control (OFAC) of the U.S. Treasury Department has immediately begun the necessary actions to implement the President's decision. The sanctions will be reinstated based on a 90 and 180-day timeline for reducing relations. He stated that after the reduction period ends, the relevant sanctions will be fully enforced. The statement noted that the OFAC will announce how these sanctions will be implemented on its website. Iran and six world powers, including the U.S., Russia, China, France, and the UK along with Germany, reached a comprehensive agreement in July 2015 to resolve ambiguities regarding Iran's nuclear program, under which Iran limited some of its nuclear activities in exchange for the suspension of nuclear sanctions against Tehran. The expiration of the sanctions listed in Section 1245 of the National Defense Authorization Act (NDAA) was set to end on May 12, and now the U.S. President will not extend the suspension of related sanctions. These sanctions include the sale of Iranian oil and foreign banks' dealings with Iran's Central Bank. Meanwhile, Hassan Rouhani, the President of the Islamic Republic of Iran, in response to the U.S. withdrawal from the nuclear agreement, stated that Tehran must receive guarantees from the other parties to the agreement that Iran's interests will be secured to continue its commitment to the JCPOA. In this context, Hassan Rouhani stated that the nuclear agreement will now be between Iran and the other five countries.