In his announcement, Trump promised to create “bigger problems than it has ever had before” for Iran if the country develops nuclear weapons. But what are the sanctions and how do they affect other countries?

Buying US dollars

The US Treasury confirmed that after a 90-day period, sanctions will be reimposed on the purchase or acquisition of US dollars by Iran.

Metals trade and automotive sector

After a 90-day period, sanctions will also be reimposed on Iran’s metal trade and its auto sector. This includes sanctions “on the direct or indirect sale, supply, or transfer to or from Iran of graphite, raw, or semi-finished metals such as aluminum and steel, coal, and software for integrating industrial processes.”

The Iran deal had previously allowed for the sale of gold and other precious metals to and from Iran. Sanctions will also be reintroduced on Iran’s automotive sector.

Read more

Petroleum and shipping

After a 180-day period, the US will reimpose sanctions on Iran’s petroleum-related transactions and its shipbuilding sector. Iran’s exports of oil had accelerated in April as Tehran sought to maximize revenue ahead of Trump’s looming decision.

Sanctions will also be placed on the Islamic Republic of Iran Shipping Lines (IRISL) and South Shipping Line Iran and their affiliates. Petroleum-related sanctions will be placed on the National Iranian Oil Company (NIOC), Naftiran Intertrade Company (NICO), and the National Iranian Tanker Company (NITC).

Financial sector

The US will also reimpose sanctions on transactions with the Iranian Central Bank and designated Iranian financial institutions. This will include sanctions on the provision of “specialized financial messaging services” to the central bank and other financial institutions and the provision of “underwriting services, insurance or reinsurance.”

The Trump administration will also revoke Iran deal authorizations for the importation of Iranian-origin carpets and foodstuffs into the US, and revoke specific licenses issued for the sale of commercial aircraft and parts to Iran.

How other countries are affected

European countries will have between 90 and 180 days to wind down their operations in Iran or they will “risk severe consequences,” according to a statement released by the White House.

Nations must all “work together to halt the Iranian regime’s destabilizing drive for regional hegemony,” the Trump administration said.

Many US sanctions on Iran are already in place and were not affected by the 2015 deal. Under these sanctions, much of direct trade between the US and Iran is already prohibited.

The White House said it believes reinstating the sanctions will put pressure on Tehran to “alter its course of malign activities.”

Like this story? Share it with a friend!