The United Nations has reinstated wide-ranging sanctions on Iran, initially suspended under the 2015 JCPOA nuclear agreement, after the three European signatories (Britain, France, and Germany) triggered the “snapback” mechanism. These renewed measures—which include a freeze on Iranian assets, a halt on arms deals, and restrictions on its ballistic missile program—aim to maintain pressure on Tehran following recent military conflicts and US strikes on its nuclear sites.
Details of the UN Sanctions
- Trigger Mechanism: The sanctions were reinstated via the “snapback” mechanism triggered by Britain, France, and Germany.
- Key Restrictions: The renewed sanctions imposed a freeze on Iranian assets abroad, a halt on arms deals, and additional restrictions on Iran’s ballistic missile program.
- Targeting Oil Revenue: New restrictions specifically target Iranian shipping, ban the sale of fuel to Iranian tankers, increase inspections of ships with dual-use goods, and restrict financial transfers, making the legal export of oil “considerably more difficult.”
Iranian Regime’s Response
- Oil Minister’s Stance: Iranian Oil Minister Mohsen Paknejad dismissed the severity of the new sanctions, stating, “There are no further sanctions that could seriously concern us,” given the roughly 470 to 480 new punitive measures imposed in the past two years.
- Official Position: Iran officially rejects the new UN sanctions as illegal.
US Strategy and Targeting of Elites
- Pressure Goal: The US aims to maintain pressure on Tehran to force the regime to abandon its nuclear ambitions, which it funds heavily through crude oil export revenue.
- Targeting Networks: The US has focused on sanctioning Iran’s shadow financial and shipping networks built to circumvent international restrictions.
- Shamkhani Family Sanctions: A major round of sanctions in July targeted a network of companies owned by the family of Mohammad Hossein Shamkhani, son of Supreme Leader advisor Ali Shamkhani, for allegedly leveraging political influence to accrue wealth and fund the regime.
- Exposure of Networks: The ability of the US to uncover these sanction-bypassing networks is partly attributed to “internal power struggles” among Iranian elites.
Oil Discounts and China’s Role
- Increased Oil Discounts: To maintain sales amidst severe restrictions, Iran has been forced to offer significantly deeper discounts on its crude oil, which have widened from a $1 discount compared to the Brent price six months ago to a $8 to $10 discount compared to similar Middle East grades.
- Clandestine Barter System: China, the largest buyer of Iranian oil since 2018, bypasses the international banking system through a largely clandestine barter arrangement. Iran ships oil to China, and in return, state-backed Chinese companies fund and build infrastructure projects in Iran, providing the regime with much-needed revenue.
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Source: DW
