The endorsement of Resolution 1929 by the United Nations Security Council in 2010 as well as the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (CISADA), which was signed into law by the then president Barack Obama on 1 July 2010, indicates that the UNSC and the US kicked off imposition of a wave of crippling sanctions on Iranian economy.
The West’s economic war against the Islamic Republic started at that time and the sanction policy could challenge economic development in the country.
The administration of former president Hassan Rouhani vowed to boom economy following the 2015 nuclear deal, also known as the Joint Comprehensive Plan of Action (JCPOA), but the then US president Donald Trump re-imposed sanctions on Iran despite the fact that Tehran complied with its commitments under the nuclear accord.
In response to the reason behind imposition of economic sanctions on Iran, most experts pointed out to political rivalry, arguing that Tehran and Washington have political disputes; thus, previous administrations pushed for political solutions, but the US-Iran confrontation dates back to more than recent 11 years, so the political factor is not the only reason behind imposition of sanctions.
It would be better to analyze effectiveness of Western sanctions on Iran economically.
US-Iran economic ties before 2008
Prior to 2008, the US was known as the only superpower in the world, which gave importance to West Asia. Iran due to its geographical location has been important to the American authorities. Before the victory of the Islamic Revolution in 1979 Iran and the US were cooperating to secure the Persian Gulf region.
From 1979 to 2008, Iran was helping consolidate the US’s economy through selling oil by using American dollar and Washington was restricting sanctions to lower level in order to guarantee Iran’s survival.
US-Iran economic ties after 2008
The upsurge of the US sanctions on Iran has its roots in events that happened after 2008, including the financial crisis in the United States and its retreatment in international economy as well as China’s economic rise.
Following the reduction of dependence of the United States on Iranian oil sale and the change of US’ attention to West Asia paved the way for the White House to impose more sanctions on Iran with less costs for the US.
In reaction, Iran needs to resort to economic tools along with political means in order to stand against the West, especially the US’s sanction policy.
The Islamic Republic can defuse the effects of the sanctions through expansion of its interdependence with other countries.
Therefore, the administration of President Ebrahim Raisi attaches importance on economic diplomacy in a bid to nullify the negative impacts of anti-Iran sanctions.
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