WEB OF SANCTIONS
Fully unraveling world restrictions on Iran could be challenging
Vessels are seen June 21 in the Strait of Hormuz near the beach of Bandar Abbas, Iran.
A convoy leaves the Buergenstock Resort on June 22 in Stansstad, Switzerland, after U.S. and Iran concluded high-level talks.
MIDDLE EAST | TRADE
The U.S. started waiving some sanctions on Iran under the countries' interim deal to end the war, but fully unraveling the restrictions on Iran's activities and trade under a more comprehensive agreement will be much harder.
The U.S., the United Nations, the European Union and other countries imposed sanctions, trade embargoes and asset freezes on Iran for decades over its nuclear program, human rights record and support for militant groups throughout the Middle East. Iran has tens of billions of dollars sitting in foreign banks that it cannot reach because of sanctions on its banking and oil sectors.
Iran now hopes to gain further sanctions relief through talks on its nuclear program as the next phase of the interim deal unfolds.
Gaining long-term relief from sanctions is critical to the prospects of a ruling system that faced unrest in recent years including bloodily suppressed mass protests over economic woes in January.
Under the 2015 Joint Comprehensive Plan of Action nuclear deal, most sanctions were lifted; that agreement took years to negotiate and now it may be much harder for both sides to bridge their differences again.
What did the US do?
Washington first sanctioned Iran in 1979 when revolutionary students seized the U.S. Embassy in Tehran and held diplomats hostage. Additional sanctions were put in place since then.
One big complication is that Washington designated Iran's Revolutionary Guard Corps, the most influential entity in the country and deeply enmeshed with its economy, a terrorist organization.
The U.S. Treasury administered the sanctions but, since they fall under different authorities and through different mechanisms, there is no quick, easy way to turn off all of them.
Authority to impose sanctions derives from two laws in the 1970s that grant presidents emergency powers that must be renewed each year, and from laws in 1996 and 2017 specifically targeting Iran and other countries.
U.S. President Donald Trump can reverse sanctions imposed through presidential executive orders. These include freezes of billions of dollars' worth of Iranian assets, an arms embargo and a ban on all trade with or investment in Iran and on anybody that buys the country's oil.
Sanctions Congress imposed, which did not include waivers or exceptions based on Iranian conduct on human rights violations or Tehran's support for terrorist organizations, will be harder to remove.
Many companies, individuals and government bodies are specifically designated and removing all those could take a long time.
What did the UN do?
U.N. sanctions are tied to Iran's nuclear program and assessed violations 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 the supply of some nuclear-related materials and technology and freezes on assets of some companies and individuals. The resolutions also banned Iran from activities to make ballistic missiles capable of delivering nuclear weapons.
While the resolutions froze funds and assets of the Revolutionary Guard and the state shipping company, they did not bar Iranian oil exports.
After the 2015 nuclear deal, the Security Council set out a schedule to lift its sanctions. After Trump ripped up the deal in 2018, Iran stopped complying with some of its requirements and the U.N. sanctions were reimposed through a "snapback" mechanism last year.
What did the EU do?
The EU placed embargoes on Iranian oil exports, froze assets held by the Central Bank of Iran and stopped the trade in precious metals and petrochemicals to and from Iran in 2012. It imposed restrictions on foreign trade, financial services and the energy and technology sectors.
Some Iranian banks were disconnected from the SWIFT system for international payments in 2012 under EU directives, largely cutting off big parts of Iran's financial system from other countries.
Though some sanctions were lifted under the 2015 deal, they later were restored. Further sanctions targeted individuals and particular missile and drone components.
The EU also sanctioned the Revolutionary Guard and imposed new sanctions this year over Iran's block on the Strait of Hormuz.
What will companies do?
Many companies would fear legal jeopardy about a return to business with Iran without a comprehensive lifting of sanctions.
Because so many Iranian companies and individuals were designated, it could be difficult for companies to ensure they would not inadvertently breach the rules.
They also could face lawsuits from attack victims, who can sue investors and companies for aiding designated terrorist groups.
