Sanctions Uniting the World
The United States, recently, reimposed a wide range of sanctions on Iran. This move has received a varied reactions from the other signatories of the 2015 nuclear deal.
The Joint Comprehensive Plan of Action (JCPOA) is a comprehensive agreement between the P5+1 countries, EU and Iran to prevent nuclear arms development in Iran in exchange for removal of sanctions.
Recently, President Trump, a long-time critic of the Iran nuclear deal went ahead and pulled out of the pact in May 2018. Washington also imposed a series of additional sanctions on Iranian entities, individuals and foreign companies.
The United States called on other powers to join it but also issued a threat, telling governments to choose: do business with the US, or Iran, not both. The response has been a nearly universal "no".Some of Washington's closest allies have even promised legislation to protect their own companies against possible US reprisals.
The UK, France and Germany - which were also parties to the 2015 accord along with Russia and China - have expressed "deep regret" at the US move.
Trump’s sanctions have led to closer ties between Iran and North Korea. Furthermore, Trump’s decision to pull out of the 2015 nuclear deal does not just affect Iran’s economy but also set a shaky foundation for relations with DPRK. China has also made its stance clear on US sanctions in Iran, saying that they will continue to commercially cooperate with Iran.
Multiple European companies doing business in Iran have responded to the sanctions. The Danish engineering company Haldor Topsoe, said it would cut around 200 jobs from its workforce of 2,700. Stadler Rail, a Swiss railway company,has put the brakes on plans for an underground railway system in Tehran.
Our assessment is that Trump’s sanctions on Iran is not just destabilizing Iran’s economy but also acting as a catalyst in redefining global alliances.