President Obama Increases Sanctions on Iran

Lena Salzbank — June 5, 2013 – 11:34 am | Barack Obama | Foreign Policy | Iran Comments (1) Add a comment

In the last week the Obama Administration has imposed multiple economic sanctions on Iran as part of its work to stop the country’s drive for nuclear weapons. The Obama Administration aims to create a stressful trading environment, de-stabilize further the value of Iran’s currency, and make it essentially impossible for Iran to conduct business.

President Barack Obama issued an executive order that will take effect on July 1^st targeting those who transact in Iran’s currency, and sanctioning those who do business with Iran’s auto sector. According to the New York Times:

Mark Dubowitz, executive director of the Foundation for Defense of Democracies, a Washington group that supports tough sanctions, said the automotive sanctions could have serious consequences for Iran, where the automotive industry is one of the biggest employers. Sanctions advocates in the United States also contend Iran’s automotive industry is a major procurement network that imports material and technologies used to build uranium centrifuges instead of cars.

Yesterday, President Obama placed yet another sanction on Iran, making this his fourth action in one week. In response to companies secretly aiding the Iranian Government with billions of dollars, the U.S. banned another 37 firms. These firms include companies in Germany, South Africa and other countries conducting underground business linked to Ayatollah Khamenei, Iran’s supreme leader.

David S. Cohen, the Treasury under secretary said, “Even as economic conditions in Iran deteriorate, senior Iranian leaders profit from a shadowy network of off-the-books front companies.”

On June 3^rd, the Obama Administration announced sanctions on anyone helping with Iranian financial transactions and any foreign financial institutions that use the Iranian rial. According to the White House, this is the first time that the Iranian rial has been a direct target of sanctions. 

Last week the Obama Administration blacklisted eight petrochemical companies. Officials have made it clear that sanctions will be imposed on all companies and governments looking to make purchases and conduct business with Iran’s petrochemical companies. This was later demonstrated when the State Department placed sanctions on a food and beverage company, a frozen yogurt company a manufacturer of Petrochemicals and Ferland Company Limited, based in Ukraine, for engaging in business activity with Iran.

These sanctions are directly involved in weakening the Iranian economy by cutting off important revenue sources and increasing Iran’s isolation. The Obama Administration continues to demonstrate that it will increase sanctions as long as Iran continues to pursue nuclear weapons.

According to The Associated Press, White House Press Secretary Jay Carney said, “We hold the door open to a diplomatic solution that allows Iran to rejoin the community of nations if they meet their obligations.” After explaining that sanctions will only increase if the regime does not cooperate, Carney continued, “Iran must understand that time is not unlimited.”

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