Iran Sanctions
Abstract
The principal objective of international sanctions -- to compel Iran to verifiably confine its nuclear program to purely peaceful uses -- has not been achieved to date. However, a broad international coalition has imposed progressively strict economic sanctions on Iran's oil export lifeline, producing increasingly severe effects on Iran's economy. Many judge that Iran might soon decide it needs a nuclear compromise to produce an easing of sanctions because of the following: (1) Oil exports provide about 70% of Iran's government revenues and Iran's oil exports have declined sharply as a result of the sanctions; (2) Together, these sanctions have reduced Iranian oil exports to about 1 million barrels per day as of October 2012, a dramatic decline from the 2.5 million barrels per day Iran exported during 2011; and (3)The loss of hard currency revenues from oil -- coupled with the cut off of Iran from the international banking system and the reported depletion of Iran's foreign exchange reserves -- caused a collapse in the value of Iran's currency, the rial, in early October. Department of Defense and other assessments indicate that sanctions have not stopped Iran from building up its conventional military and missile capabilities, in large part with indigenous skills. However, sanctions may be slowing Iran's nuclear program somewhat by preventing Iran from obtaining some needed technology from foreign sources. Iran is also judged not complying with U.N. requirements that it halt any weapons shipments outside its borders, particularly with regard to purported Iranian weapons shipments to help the embattled Asad government in Syria. Despite the imposition of what many now consider to be "crippling" sanctions, some in Congress believe that economic pressure on Iran needs to increase further and faster.
Document Details
- Document Type
- Technical Report
- Publication Date
- Oct 15, 2012
- Accession Number
- ADA584872
Entities
People
- Kenneth Katzman
Organizations
- Library of Congress