The first set of U.S. sanctions on Iran prompted by the Trump administration's withdrawal last May from the nuclear agreement goes into effect Monday, adding to pressure on the already hobbled Iranian economy.
The sanctions target important elements of Iran's economy, but they are comparatively less severe than the restrictions that go into effect on November 4. Those sanctions target the Islamic Republic's oil industry, on which Iran's economy is heavily dependent.
The reimposition of sanctions formalizes America's withdrawal from the Iran deal, under which Iran agreed to curb elements of its nuclear program in exchange for sanctions relief. But if sanctions relief was supposed to help cure Iran's economy, it didn't work out that way. The country has been under severe economic strain even without the sanctions—which are sure to make it worse.
“The Iranian economy was already on a downward spiral before the president made his decision and that's the result of the policies that Iran has espoused for quite some time,” a senior administration official said Monday in a conference call with reporters. “But there's no question that these financial sanctions are going to continue to bring significant financial pressure.”
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