Amid the discussion of whether the election of Hassan Rouhani will lead to “engagement” in the US-Iran relationship, a useful reminder from The Wall Street Journal:
Sanctions on Iran by the U.S. signed into law in January, and implemented and expanded via executive order in early June come into effect on Monday. The sanctions affect a vast array of interests engaging the Iranian economy.

The measures, signed in January as part of the National Defense Authorization Act, targets energy, shipping and shipbuilding sectors, barring the sale, supply or transfer of “significant” goods or services by non-US companies. They also restrict trade with Iran in precious metals, graphite, aluminum and steel, metallurgical coal, and software for integrating industrial processes.

But that’s not all. Only two weeks before the June election, the Obama Administration announces a series of four executive orders and Treasury steps ratcheting up sanctions. These include strict measures against Iran’s automobile sector, punishing anyone who offers assistance in the production of of light and heavy vehicles such as passenger cars, trucks, buses, minibuses, pick-up trucks, and motorcycles.

And, in the potentially most significant step, Washington is threatening to break the Iranian currency by sanctioning
any foreign financial institutions conducting “significant” transactions in the Rial. Senior administration officials have said this “will make the Rial useless outside of Iran”.

By Enduring America

 

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