Abstract
The United States and its allies have confronted Iran in an attempt to stop its nuclear program. In order to force Iran to give up its nuclear program, they have used four different policy tools: economic sanctions, media propaganda, threats of military attack, and diplomacy. This chapter covers the economic sanctions that have been imposed on Iran by the U.S., the UNSC, and the European Union (EU). It describes how the U.S. and the EU used the UNSC’s Resolutions as an excuse to impose their own economic sanctions against Iran. The Western allies have used coercive diplomacy strategy to halt uranium enrichment in Iran. This strategy includes imposing economic pressures along with threat of force while negotiating with the country.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
David Allen Baldwin, Economic Statecraft, Princeton University Press, 1985. These are the four policy tools for a country to influence another country to do something it wants the other do.
- 2.
For the previous economic sanctions that the U.S. had imposed on Iran. See Akbar E. Torbat, “Impacts of the U.S. Trade and Financial Sanctions on Iran,” The World Economy, Vol. 28, No. 3 (March 2005), pp. 407–434.
- 3.
“Coercion theory” is based on the work of Thomas Schelling and Alexander L. George. In foreign policy, coercion is referred to use of national power to make an opponent comply with the coercer’s wishes. Schelling introduced the concept of “compellence,” which requires the initiation for the first action by the coercer and punishment to be administered until the opponent comply. George developed “coercive diplomacy” strategy, which is essentially an advanced variant of “carrot and stick” strategy. Coercive diplomacy has three elements, a demand, a threat, and time pressure. For further reading refer to: Thomas Schelling, Arms and Influence, Yale University Press, 1967, and Alexander L. George, Forceful Persuasion: Coercive Diplomacy as an Alternative to War, United States Institute of Peace, 2009.
- 4.
Tom Sauer, “Coercive Diplomacy by the EU: the Iranian Nuclear Weapons Crisis,” Third World Quarterly, Vol. 28, No. 3 (2007), pp. 613–633. Tom Sauer (2007) has explained how coercive diplomacy has been used by the EU to contain the Iranian nuclear program.
- 5.
Under article 41 of Chapter VII of the UN Charter, which is concerned with non-lethal measures to be used against threats to international peace and security. See Paul Kennedy, The Parliament of Man: The Past, Present, and the Future of the United Nations, Random House, 2006, p. 324.
- 6.
Akbar E. Torbat, UN Financial Sanctions on Iran, March 9, 2007, http://www.globalresearch.ca/index.php?context=va&aid=5034.
- 7.
Naji, p. 129.
- 8.
Adopted by the Security Council at its 5647th meeting on March 24, 2007, https://www.iaea.org/sites/default/files/unsc_res1747-2007.pdf.
- 9.
United Nations, March 3, 2008, http://www.un.org/News/Press/docs//2008/sc9268.doc.htm.
- 10.
IAEA Director General Addresses Board, https://www.iaea.org/newscenter/news/iaea-director-general-addresses-board, March 1, 2010.
- 11.
Nuclear WikiLeaks: Cables Show Cozy U.S. Relationship with IAEA Chief, http://www.guardian.co.uk/world/julian-borger-global-security-blog/2010/nov/30/iaea-wikileaks.
- 12.
Neil Macfarquhar, U.S. Circulates New Draft Proposal for Iran Sanctions, March 3, 2010, http://www.nytimes.com/2010/03/04/world/04sanctions.htm.
- 13.
David Crawford, Richard Boudreaux, Joe Lauria, and Jay Solomon, U.S. Softens Sanction Plan Against Iran, front page, March 25, 2010, http://www.wsj.com/articles/SB10001424052748704266504575142073816248844.
- 14.
WikiLeaks, RE: G3/GV∗—IRAN/US—Boeing, Exxon Say New Iran Sanctions Would Hurt Global Sales, https://wikileaks.org/gifiles/docs/15/1576263_re-g3-gv-iran-us-boeing-exxon-say-new-iran-sanctions-would.html.
- 15.
Fresh Sanctions for Iran, June 9, 2010, 16:11 by The Economist online, http://www.economist.com/blogs/newsbook/2010/06/irans_nuclear_programme_0?source=features_box_main.
- 16.
Security Council, SC/9948, Department of Public Information, 9 June 2010, News and Media Division, New York, Security Council, 6335th Meeting, Security Council Imposes Additional Sanctions on Iran. http://www.un.org/News/Press/docs/2010/sc9948.doc.htm.
- 17.
Elaine Kurtenbach, Associated Press Writer, Associated Press Writer, June 11, 2010, Iran slams US, easy on China’s OK on sanctions.
- 18.
Iran’s Declaration in Response to the United Nations Security Council Resolution 1929, https://www.voltairenet.org/article165962.html.
- 19.
Comprehensive Iran Sanctions, Accountability, And Divestment Act Of 2010, http://www.gpo.gov/fdsys/pkg/PLAW-111publ195/html/PLAW-111publ195.htm.
- 20.
An Overview of O.F.A.C. Regulations Involving Sanctions Against Iran, http://www.treasury.gov/resource-center/sanctions/Programs/Documents/iran.txt.
- 21.
- 22.
Implementation of the NPT Safeguards Agreement and Relevant Provisions of Security Council Resolutions in the Islamic Republic of Iran Report by the Director General, p. 8, https://www.iaea.org/sites/default/files/gov2011-65.pdf.
- 23.
The Economist, February 25, 2012, p. 32 for tougher sanctions. http://www.economist.com/node/21548235.
- 24.
Financial Sanctions, Dollar Power, America is using the Dollar to Hurt Iran. Will It Work? The Economist, June 23, 2012, http://www.economist.com/node/21557346.
- 25.
Obama’s Iran Loopholes, All 20 of Iran’s Major Trading Partners have Sanction Exemptions, July 4, 2012, http://online.wsj.com/article/SB10001424052702304211804577502912009234948.html?KEYWORDS=iran+sanctions.
- 26.
https://www.govtrack.us/congress/bills/112/hr1905/text. Also see Samuel Rubenfeld, Wall Street Journal, October 9, 2012, White House Implements Latest Iran Sanctions, http://blogs.wsj.com/corruption-currents/2012/10/09/white-house-implements-latest-iran-sanctions/?KEYWORDS=iran+sanctions.
- 27.
What Related Guidance does OFAC have on These Sanctions?, http://www.treasury.gov/resource-center/sanctions/Programs/Documents/iran.pdf, Sanctions Brochures, Overview of Sanctions.
- 28.
Iran Sanctions: Complete and Timely Licensing Data Needed to Strengthen Enforcement of Export Restrictions, March 2010, http://www.gao.gov/products/GAO-10-375.
- 29.
Peter Fritsch, Wall Street Journal, front page, January 4, 2010.
- 30.
Jo Becker and Ron Nixon, March 6, 2010 U.S. Enriches Companies Defying Its Policy on Iran, NYT, http://www.nytimes.com/2010/03/07/world/middleeast/07sanctions.html.
- 31.
Ron Nixon, U.S. Lists Companies Aiding Iran’s Energy Projects, April 22, 2010, http://www.nytimes.com/2010/04/23/world/middleeast/23sanctions.html?_r=0.
- 32.
Akbar Torbat, The World Economy, p. 429.
- 33.
Eva Patricia Rakel, The Iranian Political Elite, State and Society Relations, and Foreign Relations Since the Islamic Revolution, http://dare.uva.nl/document/2/54677, p. 208.
- 34.
For further reading regarding Iran’s ties with Europe, see Amir Kamel, The Political Economy of EU Ties with Iraq and Iran: An Assessment of the Trade-Peace Relationship, Palgrave Macmillan, 2015.
- 35.
Rakel, p. 206.
- 36.
The European Union Press Release No. 43/98, May 18, 1998, https://curia.europa.eu/en/actu/communiques/cp98/cp9843en.htm.
- 37.
Akbar Torbat, UN Financial Sanctions on Iran, 9 March 2007, http://www.globalresearch.ca/un-financial-sanctions-on-iran-political-confrontation-iran-s-response-to-us-threats/5034.
- 38.
European Commission, http://ec.europa.eu/trade/creating-opportunities/bilateral-relations/countries/iran/.
- 39.
Rakel, p. 224.
- 40.
BBC, EU Leaders Approve Fresh Sanctions Against Iran, 17 June 2010, http://news.bbc.co.uk/2/hi/world/us_and_canada/10341907.stm.
- 41.
European Commission, Trade Topics, http://ec.europa.eu/trade/creating-opportunities/trade-topics/dual-use/.
- 42.
Iraqi oil, Lots of Black Stuff, http://www.economist.com/node/21556977, June 16, 2012.
- 43.
E.U. Imposes Fresh Round of Sanctions on Iran, January 23, 2012, http://eeas.europa.eu/top_stories/2012/230112_iran_en.htm.
- 44.
Iran: E.U. Strengthens Sanctions Over Lack of Progress in Nuclear Talks, http://europa.eu/rapid/press-release_PRES-12-422_en.htm, October 15, 2012.
- 45.
E.U. Court Overturns Sanctions on Iranian Bank, March 1, 2013, http://www.exportlawblog.com/archives/4768.
- 46.
Japan Lower House Passes Bill to Insure Iran Oil Imports, Risa Maeda. http://www.reuters.com/article/2012/06/15/us-oil-japan-iran-idUSBRE85E0B320120615.
- 47.
Iran Times, March 16, 2012, p. 8.
- 48.
Exclusive: Iran Ships “Off Radar” as Tehran Conceals Oil Sales, April 13, 2012, http://www.reuters.com/article/2012/04/13/us-iran-oil-tracking-idUSBRE83C0TS20120413.
- 49.
Iran Times, April 20, 2012, pp. 1 and 3.
- 50.
Britain has Frozen $1.6 Billion in Iranian Assets, https://www.reuters.com/article/us-iran-britain-sb/britain-has-frozen-1-6-billion-in-iranian-assets-idUSTRE55H5Z620090618, June 18, 2009.
- 51.
Germany Joins E.U. Plan to Sanction Iranian Bank, David Crawford, May 13, 2011, http://online.wsj.com/article/SB10001424052748704681904576321421419832678.html.
- 52.
Peugeot to Cut 8000 Jobs and Close Plant in France, by Eric Pfanner, July 12, 2012, http://www.nytimes.com/2012/07/13/business/global/psa-peugeot-citroen-to-cut-8000-jobs-in-france.html.
- 53.
The Iran Nuclear Issue: The View from Beijing, Beijing/Brussels, February 17, 2010, http://kerrycollison.blogspot.com/2010/02/iran-nuclear-issue-view-from-beijing.html.
- 54.
Sally Jones, Iran and China’s CNOOC Sign $16 Billion Gas Deal, December 20, 2006, http://www.rigzone.com/news/article.asp?a_id=39363.
- 55.
India Drops the Dollar and Pays for Iranian Oil in Gold, by Ag Metal Miner, February 4, 2012, https://oilprice.com/Energy/Crude-Oil/India-Drops-the-Dollar-and-Pays-for-Iranian-Oil-in-Gold.html.
- 56.
Reuters, Monday, June 25, 2012, South Korea to Halt Iran Oil Imports as E.U. Ban Bites, Meeyoung Cho, http://www.reuters.com/article/us-oil-korea-iran-idUSBRE85P00M20120626.
- 57.
Raymond Barrett, Sanctions-Busting is in Dubai’s DNA, April 20, 2010, http://www.guardian.co.uk/commentisfree/2010/apr/20/iran-sanctions-busting-dubai.
- 58.
Oil Bourse Opens in Iran’s Kish Island, February 17, 2008, http://www.youtube.com/watch?v=ZfumcC_hjRk. Also see Tehran Times, Economic Desk, Oil bourse inaugurated October 27, 2009, http://www.tehrantimes.com/index_View.asp?code=206503.
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
Copyright information
© 2020 The Author(s)
About this chapter
Cite this chapter
Torbat, A.E. (2020). The Economic Sanctions Against Iran. In: Politics of Oil and Nuclear Technology in Iran. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-33766-7_9
Download citation
DOI: https://doi.org/10.1007/978-3-030-33766-7_9
Published:
Publisher Name: Palgrave Macmillan, Cham
Print ISBN: 978-3-030-33765-0
Online ISBN: 978-3-030-33766-7
eBook Packages: Political Science and International StudiesPolitical Science and International Studies (R0)