Iran Sanctions
Abstract
Strict sanctions on Iran sanctions that primarily target Iran s key energy sector and its access to the international financial system harmed Iran s economy to the point where Iran s leaders, on November 24, 2013, accepted an interim agreement ( Joint Plan of Action, JPA). The agreement halts expansion of Iran s nuclear program in exchange for temporary and modest sanctions relief. The June 14, 2013, election of the relatively moderate Hassan Rouhani as Iran s president was an indication of the growing public pressure on the regime to achieve an easing of sanctions. Oil exports fund nearly half of Iran s government expenditures and, by late 2013, sanctions had reduced Iran s oil exports to about 1 million barrels per day far below the 2.5 million barrels per day Iran exported during 2011. The drop was caused by a European Union embargo on purchases of Iranian oil and decisions by other Iranian oil customers to obtain exemptions from U.S. sanctions. During 2012-2013, the loss of revenues from oil, coupled with the cut-off of Iran from the international banking system, caused a sharp drop in the value of Iran s currency, the rial; raised inflation to over 50%; and reduced Iran s accumulation of and access to reserves of foreign exchange. Iran s economy shrank by about 5% in 2013 and many Iranian firms shut down or reduced operations. Sanctions also attempted to directly slow Iran s nuclear and missile programs and reduce its military power by hampering its acquisition of foreign technology and weaponry. U.S. assessments indicate mixed success in these efforts. Sanctions on Iran have not halted Iran s provision of arms to the Assad government in Syria or to pro-Iranian factions in the Middle East, nor have sanctions altered Iran s repression of dissent or monitoring of the Internet.
Document Details
- Document Type
- Technical Report
- Publication Date
- May 07, 2014
- Accession Number
- ADA602442
Entities
People
- Kenneth Katzman
Organizations
- Library of Congress