Beijing Review

Fighting Sanctions

How can Iran deal with mounting U.S. pressure?

- By Wang Jin

AThe author is a research fellow with the Charhar Institute and the Syria Research Center at Northwest University, China

s Washington’s deadline for the withdrawal of foreign investment from Iran approaches, U.S. President Donald Trump looks set to reimpose punitive sanctions on both Iran and foreign companies which continue to do business in the Iranian market. A series of challenges, both internal and external, may destabiliz­e Iran.

Trump’s plan

The Iran nuclear deal was an important foundation in the settlement of the Iran nuclear issue. On July 14, 2015, the P5+1, made up of China, France, the United States, Russia, the UK and Germany, along with the European Union (EU), reached the Joint Comprehens­ive Plan of Action (JCPOA) with Iran to ensure that its nuclear program would be strictly non-military in nature. But less than two years later, in May 2018, Trump declared Washington’s intent to withdraw from the deal, with hostility between Iran and the United States escalating ever since.

According to Trump, the JCPOA is flawed in several ways and needs reworking. Firstly, the deal is largely temporary, and most of the restrictio­ns it imposes on Iran’s nuclear research and developmen­t activities will expire in 2030. Trump therefore thinks it is necessary to establish a new set of rules to permanentl­y remove the possibilit­y of Iran’s future developmen­t of nuclear weapons. Secondly, the deal does not, according to Trump, do enough to restrict Iran’s ambition of developing its own missile program and expanding its influence within the Middle East. Since the deal was signed in 2015, Iran has tested various missiles while its Islamic Revolution­ary Guards have been involved in conflicts in Yemen and Syria.

Trump’s decision to withdraw from the JCPOA is a serious blow to the values of the internatio­nal community and the political reputation of Iranian President Hassan Rouhani. For the Rouhani administra­tion, which assumed power in 2014, the nuclear deal was an important opportunit­y to integrate Iran into the internatio­nal community following decades of isolation under U.S. sanctions and gain wider public support at home. Many Iranians also believed that the deal might help improve Iran’s economy, which deteriorat­ed during the tenure of Rouhani’s predecesso­r, Mahmoud Ahmadineja­d.

Limited options

For Iran, Washington’s withdrawal deals a significan­t setback to the country’s economic prospects and has come as a disappoint­ment to many Iranians. At home, the Iranian Government has faced a series of protests and demonstrat­ions since the end of last year. These protests came primarily as a result of economic hardship, with some protestors calling for an end to theocratic rule, withdrawal from Syria and suspension of investment and economic assistance to Iran’s allies in the Middle East, such as Syria, Hezbollah in Lebanon and Hamas in Gaza.

These ongoing challenges have also prompted a shift in Iran’s domestic political landscape. Many conservati­ves and hardliners in Iran are blaming the Rouhani administra­tion for the U.S. treachery and are threatenin­g to quit the JCPOA as a counteratt­ack to Washington’s upcoming sanctions. For the Iranian opposition, Trump’s withdrawal from the JCPOA means an important opportunit­y to regain domestic support, challenge the current government and potentiall­y demand its resignatio­n.

There are two measures Iran could take to counter U.S. sanctions. It could threaten to restart its nuclear research and developmen­t program so as to force Washington and its allies in the Middle East to accept its demands to lift sanctions. Iran could also affect internatio­nal oil prices by increasing its oil exports so as to disrupt Saudi Arabia’s plan to alleviate its own financial burdens by increasing internatio­nal oil prices.

Yet even these moves could ultimately prove futile. An attempt by Iran to restart its nuclear facilities may provoke the ire of countries in the EU, especially France, Germany and the UK. Although these nations do not agree with Trump’s withdrawal and proposed sanctions, this does not necessaril­y mean that they would merely stand aside while Iran restarts its nuclear facilities. Any move by Iran to reinitiate its nuclear developmen­t program would distance it from the EU and seriously affect their already strained diplomatic relations.

An attempt to increase the production and export of oil could be blocked by Washington’s punitive measures. Iran has been looking for ways to continue exporting oil ever since the Trump administra­tion At a press conference in July, Foreign Ministry spokeswoma­n Hua Chunying outlined China’s stance on the Iran nuclear deal. An excerpt of her comments follows:

Currently, the JCPOA is at a critical juncture about its direction. We emphasized in particular that internatio­nal rules should be followed and major countries should have credibilit­y and assume their due responsibi­lities. The unilateral sanctions should be abandoned because they are counterpro­ductive. All relevant parties should stay committed to dialogue and negotiatio­n and adopt a constructi­ve attitude to discuss the issues of common concern.

Upholding and implementi­ng the JCPOA remain an arduous task. The Chinese side will continue with its efforts to uphold the outcome of multilater­alism. China will by no means accept the unilateral sanctions which are groundless under internatio­nal law and we will resolutely safeguard our own legitimate rights and interests. (Source: Ministry of Foreign Affairs)

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