by Farzin Vajihi Political and Energy Policy analyst, Journalist
The oil industry in Iran is vast and lucrative, but it has been marred by sanctions from the United States government. In 2011, Iran’s oil exports totaled 2.7 million barrels per day (mbd), but sanctions decreased the country’s oil export to 1.6 mbd by 2018. Sanctions against Iran had significant implications for the country’s economy, such as an increase in gasoline prices by 87%. As a result, Iran could not invest in new technology or develop its oilfields as effectively as it would. The United States aimed to punish Iran and change its behavior, and thus far, the sanctions have been successful. Continued sanctions will put more pressure on the Iranian government, which may cause it to make concessions that would improve the situation for Iranians living under its rule.
Moreover, the sanctions are critical in preventing Iran from developing a nuclear weapon, promoting regional stability, and protecting human rights. The US should continue placing sanctions on Iran through maximum pressure because the revenue from the oil industry has not been benefiting Iranian citizens. The government has channeled these proceeds to support its nuclear and missile programs, Revolutionary Guard Corps, and other extremist groups.
The campaign to apply maximum pressure on the Iranian government is still incredibly successful. Iran’s economy is now dealing with a currency crisis, rising governmental debt, and increasing inflation. Iran exported around 2.7 million barrels per day before the Maximum Pressure campaign. The export of even a fifth of that volume is now demanding. The United States has prohibited the regime from receiving direct access to more than $70 billion in oil revenue since May 2018. It will continue to do so for another $50 billion each year. Since the commencement of the campaign, the Iranian Rial has lost half of its value against the dollar, and the country’s GDP has decreased for three years in a row by about 6%.
Because the sanctions deny the dictatorship the money it would need to carry out its evil deeds, they must be maintained under all possible pressure. Iran cut its military spending by roughly 25% in 2019 because of sanctions. The terrorist allies and agents of the state are begging for money and have been obliged to implement austerity measures, including laying off some terrorists. Sanctions are one of the factors forming the new Middle East, uniting nations that suffer from Iran’s brutality and strive for a more tranquil and stable area than the one that currently exists. Reducing the maximum pressure is risky and will only empower the Islamic Republic and harm new regional peace collaborations.
In light of recent events, halting sanctions would encourage Iran to continue sponsoring terrorists. Initially, Iran used the JCPOA’s reprieve from sanctions between 2016 and 2018 to boost its military budget by more than 30%, reaching a record high. Iran’s allies and proxies got wealthy and incredibly confident. While the regime boosted financing for the military and the Basij, the primary tool of internal oppression, its elites amassed billions to enrich themselves. Iranians did not benefit from the riches pledged by their leaders. Because of this, Iranian dissidents worldwide are demanding the continuation of sanctions against this dictatorship as long as its reprehensible actions persist.
On the other hand, the Joint Comprehensive Plan of Action (JCPOA), which the Obama administration and Iran reached in July 2015, was officially terminated by the Trump administration in May 2018. The US administration reinstated all previously suspended economic restrictions connected to Iran’s nuclear program during the following 120 days, up until November 5, 2018, including “secondary penalties” on foreign organizations conducting business or conducting financial transactions with Iran.
Although the US government incorporated exceptions for emergency imports in its restrictions system, the scope of US sanctions against Iranian institutions and negative statements from US officials have significantly reduced Iran’s ability to finance such imports. The impacts of the US sanctions tightening, whether on purpose or not, pose a threat to Iranians’ health rights and access to necessary pharmaceuticals. They probably certainly contributed to the shortages that have been noted, which range from a dearth of crucial medications for epileptic sufferers to a shortage of chemotherapy alternatives for Iranians with cancer. Therefore, Iranian civilians suffering from various illnesses and medical ailments are affected needlessly because of the JCPOA’s suspension. Iranians with uncommon diseases and conditions requiring specialist care who cannot obtain previously accessible medicines or supplies are among the hardest affected. They include individuals with leukemia, epidermolysis bullosa (EB), epilepsy, and those with long-term eye impairments from exposure to chemical weapons during the Iran-Iraq war. As a result, the delayed restoration of the JCPOA is devastating for Iranians.
The US sanctions against Iran should continue with maximum pressure for the well-being of Iranians and the world at large. The sanctions aim to compel Iran to change its behavior of making nuclear weapons and sponsoring terrorist activities. It is evident that the sanctions have targeted the oil industry, which is Iran’s economic powerhouse. Through oil exports, Iran has supported its nuclear and missile programs, Revolutionary Guard Corps, and other extremist groups instead of improving the citizens’ livelihoods. Therefore, besides enhancing the lives of Iranians, restrictions against Iran will help form the new Middle East, unite nations that suffer from Iran’s brutality, and strive for a more tranquil and stable region than what currently exists.
