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Iran sanctions: US vows 'relentless' pressure as sanctions resume | Iran sanctions: US vows 'relentless' pressure as sanctions resume |
(35 minutes later) | |
Secretary of State Mike Pompeo has warned that the US will exert "relentless" pressure on Iran unless it changes its "revolutionary course". | Secretary of State Mike Pompeo has warned that the US will exert "relentless" pressure on Iran unless it changes its "revolutionary course". |
His comments came hours after the Trump administration restored all sanctions lifted under the 2015 nuclear deal, targeting core parts of Iran's economy. | His comments came hours after the Trump administration restored all sanctions lifted under the 2015 nuclear deal, targeting core parts of Iran's economy. |
Iran's President Hassan Rouhani earlier struck a defiant tone, saying the country will "continue selling oil". | Iran's President Hassan Rouhani earlier struck a defiant tone, saying the country will "continue selling oil". |
"We will proudly break the sanctions," he told economic officials. | "We will proudly break the sanctions," he told economic officials. |
Mr Pompeo told reporters: "The Iranian regime has a choice: it can either do a 180-degree turn from its outlaw course of action and act like a normal country, or it can see its economy crumble." | Mr Pompeo told reporters: "The Iranian regime has a choice: it can either do a 180-degree turn from its outlaw course of action and act like a normal country, or it can see its economy crumble." |
He said more than 20 nations had already cut their oil intake from the Islamic Republic, and its exports had fallen by a million barrels a day. | He said more than 20 nations had already cut their oil intake from the Islamic Republic, and its exports had fallen by a million barrels a day. |
European countries which are still party to the 2015 accord have said they will help businesses bypass the sanctions. But there are doubts about how successful this will be. | European countries which are still party to the 2015 accord have said they will help businesses bypass the sanctions. But there are doubts about how successful this will be. |
How did we get here? | How did we get here? |
US President Donald Trump withdrew the US from the nuclear accord earlier this year, calling it the "worst deal ever negotiated". | US President Donald Trump withdrew the US from the nuclear accord earlier this year, calling it the "worst deal ever negotiated". |
The agreement offered Iran sanctions relief in exchange for reducing its nuclear development. The global nuclear watchdog, the IAEA, says Iran has complied with it. | |
President Trump has said he wants to get Iran back to the negotiating table. | President Trump has said he wants to get Iran back to the negotiating table. |
His administration also wants to stop what it calls Tehran's "malign" activities - including cyber attacks, ballistic missile tests, and support for terror groups and militias in the Middle East. | His administration also wants to stop what it calls Tehran's "malign" activities - including cyber attacks, ballistic missile tests, and support for terror groups and militias in the Middle East. |
The president believes his "maximum pressure" strategy is working, but said on Monday that he wants to impose sanctions gradually to prevent a spike in energy prices. | The president believes his "maximum pressure" strategy is working, but said on Monday that he wants to impose sanctions gradually to prevent a spike in energy prices. |
"I could get the Iran oil down to zero immediately," he told journalists, "but it would cause a shock to the market. I don't want to lift oil prices." | |
The US state department said that three civil nuclear projects set up in Iran through the 2015 deal would be allowed to continue, "under the strictest scrutiny". | |
It said "temporary" waivers had been granted, without giving a timeframe. | |
Why does the US claim Iran is the 'world's largest state sponsor of terrorism'? | Why does the US claim Iran is the 'world's largest state sponsor of terrorism'? |
The US and Iran have been arch-foes since the Islamic revolution in 1979. | The US and Iran have been arch-foes since the Islamic revolution in 1979. |
Since then, Iran has provided arms and financial support to militant groups active in the Middle East and further afield. | Since then, Iran has provided arms and financial support to militant groups active in the Middle East and further afield. |
Some of these groups, such as Lebanon's Hezbollah, have carried out devastating attacks, including on a military barracks in Beirut in 1983, which killed 241 US service personnel and 58 French paratroopers. Iran denied being behind that attack. | Some of these groups, such as Lebanon's Hezbollah, have carried out devastating attacks, including on a military barracks in Beirut in 1983, which killed 241 US service personnel and 58 French paratroopers. Iran denied being behind that attack. |
The US has also accused Iran of direct involvement in plotting or carrying out attacks - from bombings to assassinations. | The US has also accused Iran of direct involvement in plotting or carrying out attacks - from bombings to assassinations. |
According to a report by the US State Department, since 2012, Iran has spent $16bn on proxy groups in the region as well as support for Syrian President Bashar al-Assad. | According to a report by the US State Department, since 2012, Iran has spent $16bn on proxy groups in the region as well as support for Syrian President Bashar al-Assad. |
Iran accepts neither the US allegations, nor its designation as an exporter of terror. | Iran accepts neither the US allegations, nor its designation as an exporter of terror. |
What could the sanctions' impact be? | What could the sanctions' impact be? |
The US reinstated a raft of sanctions in August, but analysts say this latest round is by far the most significant. | The US reinstated a raft of sanctions in August, but analysts say this latest round is by far the most significant. |
More than 700 individuals, entities, vessels and aircraft are now on the sanctions list, including major banks, oil exporters and shipping companies. | More than 700 individuals, entities, vessels and aircraft are now on the sanctions list, including major banks, oil exporters and shipping companies. |
The Brussels-based Swift network for making international payments has confirmed it will cut off links with some Iranian banks, isolating Iran from the international financial system. | The Brussels-based Swift network for making international payments has confirmed it will cut off links with some Iranian banks, isolating Iran from the international financial system. |
However, the Trump administration has granted temporary exemptions to eight countries to continue importing Iranian oil - China, India, Italy, Greece, Japan, South Korea, Taiwan and Turkey. | However, the Trump administration has granted temporary exemptions to eight countries to continue importing Iranian oil - China, India, Italy, Greece, Japan, South Korea, Taiwan and Turkey. |
This is significant as China and India are among Iran's largest trading partners. | This is significant as China and India are among Iran's largest trading partners. |
Even before the US sanctions were reimposed, Iran's economy had had a difficult year, with its currency, the rial, plummeting against the dollar, driving up the price of basic goods. | Even before the US sanctions were reimposed, Iran's economy had had a difficult year, with its currency, the rial, plummeting against the dollar, driving up the price of basic goods. |
Mr Trump's national security adviser John Bolton announced on Monday that even more measures could follow soon. | Mr Trump's national security adviser John Bolton announced on Monday that even more measures could follow soon. |
Hardliners smell blood but Rouhani is safe for now | Hardliners smell blood but Rouhani is safe for now |
By Kasra Naji, Special Correspondent, BBC Persian | By Kasra Naji, Special Correspondent, BBC Persian |
The sweeping US sanctions will be debilitating to the government's day-to-day running of the country. | The sweeping US sanctions will be debilitating to the government's day-to-day running of the country. |
They will also be disastrous for ordinary people who are already reeling under the weight of rising prices, shortages, and the rapidly falling value of the rial. | They will also be disastrous for ordinary people who are already reeling under the weight of rising prices, shortages, and the rapidly falling value of the rial. |
All this will put President Rouhani under considerable strain. | All this will put President Rouhani under considerable strain. |
Iran's hardliners see a chance to force a change of government, arguing extraordinary conditions require extraordinary solutions. | Iran's hardliners see a chance to force a change of government, arguing extraordinary conditions require extraordinary solutions. |
But the country's Supreme Leader, Ayatollah Ali Khamenei, is not so sure. Taking on the running of the country under these conditions could be a poisoned chalice for him and for the hardliners he supports. | But the country's Supreme Leader, Ayatollah Ali Khamenei, is not so sure. Taking on the running of the country under these conditions could be a poisoned chalice for him and for the hardliners he supports. |
How do other countries see the sanctions? | How do other countries see the sanctions? |
The UK, Germany and France - which are among the five countries still committed to the nuclear pact - have all promised to support European firms that do "legitimate business" with Iran. | The UK, Germany and France - which are among the five countries still committed to the nuclear pact - have all promised to support European firms that do "legitimate business" with Iran. |
They have set up an alternative payment mechanism - or Special Purpose Vehicle (SPV) - that will help companies trade without facing US penalties. | They have set up an alternative payment mechanism - or Special Purpose Vehicle (SPV) - that will help companies trade without facing US penalties. |
However, analysts doubt this will lessen the impact of sanctions on Iran, given the importance of the US to global trade. | However, analysts doubt this will lessen the impact of sanctions on Iran, given the importance of the US to global trade. |
Mr Pompeo said more than 100 international companies had withdrawn from Iran because of the looming sanctions. | Mr Pompeo said more than 100 international companies had withdrawn from Iran because of the looming sanctions. |
And even if firms can use the SPV, any US company it does business with could face punishment. | And even if firms can use the SPV, any US company it does business with could face punishment. |
Another signatory to the nuclear deal, China, has said it regrets the re-imposition of sanctions and that its lawful trade with Iran should be respected. | Another signatory to the nuclear deal, China, has said it regrets the re-imposition of sanctions and that its lawful trade with Iran should be respected. |
Israel - Iran's long-time foe in the Middle East - called the move a "courageous, determined and important decision". | Israel - Iran's long-time foe in the Middle East - called the move a "courageous, determined and important decision". |