What sanctions does Iran face and could they be lifted under the new deal | Explained

The interim agreement to end the conflict with Iran includes a waiver allowing certain sanctioned oil sales, but Tehran remains subject to a wide range of international restrictions affecting its trade and economic activities, Reuters reported.

For decades, Iran has faced sanctions, trade embargoes, and asset freezes imposed by the United Nations, the United States, the European Union, and other countries over concerns related to its nuclear programme, human rights record, and support for armed groups across the region.

Iran hopes to gain further sanctions relief through talks on its nuclear programme as the next phase of the interim deal unfolds. These are some of the sanctions on Iran, ranging from wholesale trade bans to specific rules targeting particular individuals or entities.

United Nations Sanctions

U.N. sanctions are tied to Iran's nuclear programme and assessed violations of its obligations under the nuclear Non-Proliferation Treaty.

The U.N. Security Council passed resolutions imposing sanctions in 2006, 2007, 2008 and 2010.

They included an arms embargo, bans on supply of some nuclear-related materials and technology and freezes on assets of some companies and individuals.

The resolutions also banned Iran from any activities to make ballistic missiles capable of delivering nuclear weapons.

While the resolutions froze funds and assets of the Islamic Revolutionary Guard Corps and the state shipping company, they did not bar Iranian oil exports.

After the Joint Comprehensive Plan of Action (JCPOA) nuclear deal was reached in 2015, the Security Council set out a schedule to lift its sanctions on Iran.

However, U.S. President Donald Trump ripped up the deal in 2018 and Iran stopped complying with some of its requirements. The U.N. sanctions were reimposed through 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 held American diplomats hostage. Since then, Washington has expanded the sanctions regime, citing concerns over Iran’s support for groups it classifies as terrorist organisations and its nuclear activities, Reuters reported.

A major challenge in easing these restrictions is the status of the Islamic Revolutionary Guard Corps (IRGC), one of Iran’s most powerful institutions with extensive influence over the country’s economy. The United States has designated the IRGC as a terrorist organisation, complicating efforts to lift sanctions or normalise economic relations with Tehran.

The sanctions are administered by the U.S. Treasury, but as they come under different authorities and through different mechanisms, there is no quick, easy way to turn them all off.

Authority to impose sanctions derives from two laws in the 1970s that grant presidents emergency powers that have to be renewed each year, and from laws in 1996 and 2017 specifically targeting Iran and other countries.

Sanctions imposed by the president through executive orders can be reversed with a stroke of the pen by Trump. These include freezes of billions of dollars' worth of Iranian assets, an arms embargo, a ban on all trade with or investment in Iran and on anybody buying the country's oil.

Harder to remove are the sanctions that were imposed by Congress, which did not include waivers or exceptions based on Iranian conduct around human rights violations or Tehran's support for groups Washington regards as terrorist organisations.

Many companies, individuals and government bodies are specifically designated and removing all those could take a long time.

European Union sanctions

In 2012, the European Union imposed sweeping sanctions on Iran, including an embargo on Iranian oil exports, the freezing of assets belonging to the Central Bank of Iran, and restrictions on trade involving precious metals and petrochemical products.

The measures also targeted Iran’s foreign trade, financial services, energy, and technology sectors. As part of the sanctions regime, several Iranian banks were disconnected from the SWIFT international payments network in 2012, significantly limiting Iran’s access to the global financial system and disrupting its ability to conduct international transactions, Reuters reported.

Although some sanctions were lifted under the JCPOA, they were restored later on. Further sanctions have targeted individuals and particular missile and drone components.

The EU has also sanctioned the IRGC and it imposed new sanctions this year over Iran's blocking of the Strait of Hormuz.

Where does Iran have frozen assets?

Iran has tens of billions of dollars in overseas bank accounts, largely accumulated from oil and gas exports, but remains unable to access much of these funds because of sanctions targeting its banking and energy sectors.

Significant amounts of Iranian oil revenue have been frozen in banks across several countries, including South Korea, China, Japan, Luxembourg, and Iraq, leaving billions of dollars beyond Tehran’s reach.

US Treasury sanctions Lebanese officials, others for supporting Hezbollah

The U.S. government on Thursday imposed sanctions on several Lebanese officials it accused of supporting Hezbollah, along with individuals linked to the sanctioned Alaa Hassan Hamieh business network, Reuters reported.

Washington said the measures were taken over alleged efforts to undermine Lebanon’s peace process and delay the disarmament of Hezbollah.

The U.S. Treasury Department said its Office of Foreign Assets Control was also designating individuals in Lebanon, Syria, Iraq, and Oman who it said were raising funds and operating front companies to generate revenue for Hezbollah, an Iran-backed militant group, as reported by Reuters.

(With inputs from Reuters)