US Reimposes Sanctions on Iran
- 03 Nov 2018
- 3 min read
The US imposed sanctions on Iran will come under enforcement from November 5. This is the second round of sanctions targeting oil and petrochemicals.
- The first sanction took effect from on August 7 targeting Iran’s aviation sector, auto industry, trade in gold and precious metals etc.
Iran Nuclear Program and JCPOA
- In 2015, Iran with the P5+1 group of world powers - the US, UK, France, China, Russia, and Germany agreed on a long-term deal on its nuclear programme.
- The deal was named as Joint Comprehensive Plan of Action (JCPOA) and in common parlance as Iran Nuclear Deal.
- The deal came after years of tension over Iran's alleged efforts to develop nuclear weapons.
- Iran insisted that its nuclear programme was entirely peaceful, but the international community did not believe that.
- Under the JCPOA, Iran agreed to limit its nuclear activities by stopping uranium enrichment and allowing the international agencies to inspect its nuclear facilities in return for the lifting of economic sanctions.
US Withdrawal from JCPOA
- US has alleged that the deal with Iran fails to address the threat of Iran’s missile programme and did not include a strong enough mechanism for inspections and verification of Iran's nuclear sites.
- In May 2018, US pulled out of Iran Nuclear Deal - JCPOA and threatened to impose sanctions on Iran and on nations doing the significant amount of trade with Iran.
- However, no other signatory of the deal has supported the US stand on the deal and even the UN has expressed grave misgivings about the decision. The U.S. has given no evidence that Iran in any way violated the terms of the JCPOA.
- The International Atomic Energy Agency’s June report concluded that Iran’s stockpile of uranium and heavy water, as well as its implementation of additional protocols, were “in compliance” with the agreement.
Impact on India
- Iran is the third largest supplier of oil for India after Iraq and Saudi Arabia. Though India has got a temporary waiver from sanctions, sanctions can increase the price of oil in global markets thus increasing India’s import bill.
- India also has strategic interests in Iran which will be impacted by sanctions. India has made the economic investment in Chabahar port and in International North-South Transport Corridor.