Sanctions have been the policy tool of choice used by six presidents to deal with Iran. Since the 1979 revolution, the White House has issued at least 16 executive orders, and Congress has passed ten statutes imposing punitive sanctions on Iran in four waves, according to Ali Vaez, of the International Crisis Group, in The Iran Primer.
- The first wave of U.S. sanctions, from 1979 to 1995, was a response to the U.S. embassy hostage crisis and Tehran’s support for extremist groups in the region.
- The second wave of sanctions, from 1995 to 2006, sought to weaken the Islamic Republic by targeting its oil and gas industry and denying it access to nuclear and missile technology. U.S. sanctions also targeted any company in a third country that invested in Iran’s energy sector, a move to compel allies to adopt a unified stance against Iran.
- The third wave, from 2006 to 2010, was imposed chiefly due to concerns over Tehran’s nuclear ambitions, but also included punitive measures for Iran’s human rights violations.
- The latest wave of sanctions, since 2010 includes, some of the toughest restrictions the United States has ever imposed on any country. They target Iran’s Central Bank and its ability to repatriate oil revenues as well as many transportation, insurance, manufacturing and financial sectors.
The first two waves of sanctions were unilaterally imposed by Washington. But the last two included similar measures imposed by U.S. allies and the United Nations, generating almost a global sanctions regime against Iran. Many U.S. sanctions are tied to Iran’s non-nuclear policies, such as human rights abuses and support for terrorism.
Quick Factoids: Sanctions Impact
- U.S. and E.U. sanctions have cost Iran over $100 billion in lost sales since 2011. Treasury Undersecretary David S. Cohen April 2014
- Iran’s economy contracted by about six percent in 2013 and is expected to perform badly in 2014 as well. Treasury Undersecretary David S. Cohen April 2014
- Sanctions have cut oil export earnings by more than 60 percent since 2011. State Department Undersecretary Wendy Sherman February 2014
- Oil revenues plummeted from $100 billion in 2011 to $35 billion in 2013. Kenneth Katzman, Congressional Research Service May 2014
- Iran’s currency, the rial, has lost about 60 percent of its value since 2011. State Department briefing November 2013
Congressional Sanctions
- The Iran-Iraq Arms Nonproliferation Act of 1992: Sanctions foreign countries that transfer goods or technology that knowingly contribute to Iran acquiring chemical, biological, nuclear or advanced conventional weapons.
- Iran Sanctions Act of 1996: Sanctions investment in Iran’s energy sector. (Amended and expanded since then.)
- Iran Nonproliferation Act of 2000: Sanctions foreign individuals and entities helping Iran with developing weapons of mass of destruction.
- Iran Freedom Support Act of 2006: Sanctions entities that contribute to Iran’s ability to acquire chemical, biological or nuclear weapons.
- Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010: Sanctions sale of gasoline and gasoline production equipment to Iran, sanctions banks that transact with the Islamic Revolutionary Guards Corps, and blacklists individuals involved with human rights abuses related to the crackdown on protestors following the June 2009 presidential election.
- Iran-Syria-North Korea Nonproliferation Act of 2011: Sanctions entities and individuals supporting weapons of mass destruction or cruise or ballistic missile programs.
- Section 311 of the USA Patriot Act: Identifies Iran as a jurisdiction of primary money laundering concern and prohibits the opening or maintaining of correspondent accounts by any domestic financial institution or agency for or on behalf of a foreign banking institution, if the account involves Iran.
- National Defense Authorization Act for Fiscal Year 2012: Sanctions foreign banks that transact with Iran’s Central Bank. Exemptions can be issued to banks whose parent countries have substantially curtailed purchases of Iranian oil.
- Iran Threat Reduction and Syria Human Rights Act of 2012: Expands sanctions on foreign banks dealing in Iran’s energy sector and on entities involved with human rights abuses in Syria
- National Defense Authorization Act for Fiscal Year 2013: Expands sanctions on energy, shipping and shipbuilding sectors for ties to proliferation activities.
White House Executive Orders
Executive Order 12170 (November 1979): Declares a national emergency related to the events of 1979 and blocks Iranian government property subject to U.S. jurisdiction.
Executive Order 12957 (March 1995): Prohibits persons under U.S. jurisdiction from entering into certain transactions with respect to Iranian petroleum resources.
Executive Order 12959 (May 1995): Expands national emergency set forth in E.O. 12957 and prohibits entering into new investment with Iran. Food and medical products are exempt.
Executive Order 13059 (August 1997): Prohibits most imports from Iran, exports to Iran, new investment, transactions relating to Iran-origin goods regardless of their location.
Executive Order 13224 (September 2001): Declares a national emergency in aftermath of September 11, and blocks property and prohibits transactions with persons who commit, threaten to commit, or support terrorism.
Executive Order 13382 (June 2005): Expands national emergency set forth in E.O. 12938; blocks property of WMD proliferators and their supporters.
Executive Order 13553 (September 2010): Expands national emergency set forth in E.O. 12957; blocks property of certain persons with respect to human rights abuses by the government of Iran. Generates a list of designated individuals for whom property under U.S. jurisdiction is blocked. Imposes sanctions on those who enter into transactions with designated individuals.
Executive Order 13572 (April 2011): Blocks property of the Islamic Revolutionary Guards Corps for human rights abuses in Syria.
Executive Order 13574 (May 2011): Expands national emergency set forth in E.O. 12957; implements new sanctions added to ISA. Prohibits U.S. financial institutions from making loans or credits, or engaging in foreign exchange transactions. Prohibits imports from, and blocks property of, sanctioned persons.
Executive Order 13590 (November 2011): Expands national emergency set forth in E.O. 12957; blocks property of those who trade in goods, services, technology, or support for Iran’s energy and petrochemical sectors. Prohibits Ex-Im Bank from entering into transactions with sanctioned persons. Requires Federal Reserve to deny goods and services. Prohibits U.S. financial institutions from making most loans or credits.
Executive Order 13599 (February 2012): Expands national emergency set forth in E.O. 12957; blocks property of the government of Iran and Iranian financial institutions, including the Central Bank of Iran.
Executive Order 13606 (April 2012): Expands national emergency set forth in E.O. 12957; blocks property and suspends entry into the U.S of Iranian and Syrian officials engaged in human rights abuses.
Executive Order 13608 (May 2012): Expands national emergency set forth in E.O. 12957; prohibits transactions with and suspends entry into the U.S. foreign sanctions evaders.
Executive Order 13622 (July 2012): Expands national emergency set forth in E.O. 12957; authorizes sanctions on foreign financial institutions that finance activities with National Iranian Oil Company. Prohibits Ex-Im Bank financing, designation as a primary dealer of U.S. debt instruments, access to U.S. financial institutions. Blocks property, denies imports and exports.
Executive Order 13628 (October 2012): Expands national emergency set forth in E.O. 12957. Further prohibits U.S. financial institutions from making loans or credits, foreign exchange transactions, and transfers or credits between financial institutions. Blocks property of those who deal in equity or debt instruments of a sanctioned person. Prohibits imports, exports. Extends sanctions to other officers of sanctioned entities. Blocks property affiliated with human rights abusers. Denies access to certain financing tools, property, and imports, if one engaged in expansion of Iran’s refined petroleum sector. Blocks entry into the U.S. of those engaged in human rights abuses.
Executive Order 13645 (June 2013): Expands national emergency in E.O. 12957; imposes restrictions on foreign financial institutions engaged in transactions relating to, or maintaining accounts dominated by, Iran’s currency. Prohibits opening or maintaining U.S.-based payable-through correspondent accounts. Blocks property under U.S. jurisdiction. Imposes restrictions on those, including foreign financial institutions, found to be materially assisting in any way an Iran-related specially designated natinoal. Imposes restrictions on those found to engage in transactions related to Iran’s petroleum or related products. Requires the Secretary of State to impose restrictions on financing (Federal Reserve, Ex-Im Bank, commercial banks) on those found to engage in significant transactions related to Iran’s automotive sector. Blocks property of those found to have engaged in diversion of goods and services intended for Iran’s people.
4 United Nations resolutions
UNSC Resolution 1737 (December 2006)
UNSC Council Resolution 1747 (March 2007)
UNSC Council Resolution 1803 (March 2008)
UNSC Council Resolution 1929 (June 2010)
The four Security Council resolutions include the following sanctions:
- Imposing asset freezes on individuals and companies for involvement in ballistic missile programs and nuclear programs.
- Imposing asset freezes on individuals, companies and banks affiliated with the Revolutionary Guards.
- Requires states to prohibit procurement of arms and related material from Iran and require states to restrict supply of specified arms and combat equipment to Iran.
- Calls on states to exercise vigilance in entering new public financial support commitments with Iran.
- Calls on states to exercise vigilance over Iranian bank transactions in their territories.