US think tank: Iran sanctions damaging US economy

TEHRAN (FNA)- Economic sanctions on Iran would have counterproductive effects and entail substantial costs for the US companies, an American think-tank said.

“An infatuation with economic sanctions, applied against countries Americans do not like such as Iran, loses sight of the concept that sanctions are only a tool for trying to accomplish some other objective, rather than being an objective in their own right,” Paul Pillar said in an article on the National Interest website.

He said that one of the main drawbacks of the sanctions which is always ignored by the US politicians is the forced interference of the government in the workings of the market which definitely imposes costs on Americans.

“The formidable, fear-inducing enforcement of US sanctions against Iran entails substantial costs for US companies. Not only are these companies excluded from some major opportunities for new business; they have to jump through additional hoops to make sure they do not run afoul of the enforcers in areas where they still are doing business,” Pillar said.

He also added that the sanctions regime would bring destructive effects for the oil market which is a major element in the economic history of the United States, and increases the oil price due to the lack of competition among producers.

Pillar cautioned that these sanctions inflict many non-economic and non-quantifiable but still significant costs on the US.

“The enormous diplomatic effort expended in erecting and maintaining the sanctions regime has burned a lot of chits with other countries around the world, as well as much energy and attention of US officials. It would be nice to see that political capital expended on something that has more direct benefit to US interests,” Pillar underlined.

By Fars News Agency 


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