An interim deal to end the conflict with Iran includes a waiver allowing some sanctioned oil sales to proceed, but the country continues to operate under an extensive and complicated set of international restrictions on its trade and activities.
For decades, Iran has faced sanctions, trade embargoes, and asset freezes imposed by the United Nations, the United States, the European Union, and other nations. These measures were put in place over concerns about Iran’s nuclear program, its human rights record, and its backing of various groups throughout the region.
Iran is now looking to secure additional relief from those restrictions through ongoing negotiations over its nuclear program, as the next stage of the interim agreement takes shape.
Here is a breakdown of the key sanctions currently in place against Iran, which range from sweeping trade prohibitions to targeted measures against specific individuals and organizations.
UNITED NATIONS SANCTIONS
The U.N.’s sanctions against Iran are directly connected to its nuclear program and alleged failures to meet its obligations under the nuclear Non-Proliferation Treaty.
The U.N. Security Council passed resolutions imposing sanctions in 2006, 2007, 2008, and 2010. Those measures included an arms embargo, restrictions on the supply of certain nuclear-related materials and technology, and asset freezes targeting specific companies and individuals.
The resolutions also prohibited Iran from conducting any activities related to developing ballistic missiles capable of carrying nuclear warheads.
While the funds and assets of the Islamic Revolutionary Guard Corps and Iran’s state-owned shipping company were frozen, the resolutions did not block Iranian oil exports.
Following the 2015 Joint Comprehensive Plan of Action — commonly known as the JCPOA — the Security Council established a timeline for lifting its sanctions against Iran. However, U.S. President Donald Trump withdrew from the agreement in 2018, and Iran subsequently stopped honoring some of its commitments under the deal. The U.N. sanctions were then reinstated through what is known as a “snapback” mechanism last year.
UNITED STATES SANCTIONS
The United States first imposed sanctions on Iran in 1979, after revolutionary students stormed the U.S. embassy in Tehran and took diplomats hostage. Many additional layers of sanctions have been added over the years, targeting Iran’s support for groups the U.S. considers terrorist organizations, as well as its nuclear activities.
A major complicating factor is that the Islamic Revolutionary Guard Corps — the most powerful single entity in Iran and deeply intertwined with its economy — has been designated by Washington as a terrorist organization.
The U.S. Treasury Department administers the sanctions, but because they were enacted through different legal authorities and mechanisms, there is no simple or swift way to remove all of them at once.
The legal authority to impose sanctions stems from two laws passed in the 1970s that give presidents emergency powers requiring annual renewal, as well as from legislation passed in 1996 and 2017 that specifically targets Iran and certain other countries.
Sanctions that the president put in place through executive orders can be reversed by Trump with a single signature. Those include freezes on billions of dollars in Iranian assets, an arms embargo, a prohibition on all trade with or investment in Iran, and a ban on purchasing Iranian oil.
More difficult to undo are the sanctions enacted by Congress, which did not include exceptions or waivers tied to Iran’s behavior regarding human rights or its support for groups Washington considers terrorist organizations.
Numerous companies, individuals, and government entities have been specifically designated under these sanctions, and removing each designation could be a lengthy process.
EUROPEAN UNION SANCTIONS
In 2012, the EU imposed embargoes on Iranian oil exports, froze assets held by Iran’s Central Bank, and halted trade in precious metals and petrochemicals with Iran.
The bloc also placed restrictions on foreign trade, financial services, and the energy and technology sectors.
That same year, some Iranian banks were cut off from the SWIFT international payments system under EU directives, effectively severing large portions of Iran’s financial network from the rest of the world.
While certain sanctions were lifted under the JCPOA, they were later reinstated. Additional sanctions have since been aimed at specific individuals and particular components used in missiles and drones.
The EU has also sanctioned the Islamic Revolutionary Guard Corps and imposed new measures this year in response to Iran’s blocking of the Strait of Hormuz.
WHERE ARE IRAN’S FROZEN ASSETS?
Iran has tens of billions of dollars sitting in foreign banks — money earned primarily from oil and gas exports — that it is unable to access due to the various sanctions targeting its banking and energy sectors.
Countries where Iran has had billions of dollars from oil sales locked in inaccessible bank accounts include South Korea, China, Japan, Luxembourg, and Iraq.
