The Effectiveness of Thousands of US Sanctions on Iran: Economic Pressure vs Evasion Tactics
The United States launched more than 1,000 sanctions against Iran over the last 18 months as part of a broad campaign to pressure Tehran into submission. However, Iran’s ability to endure so far reveals a harsh fact for Washington: economic pressure has largely failed to subdue regimes it considers problematic, as they continue to find ways to circumvent US restrictions.
The White House deal signed this week with Iran to ease economic pressure—in return for unhindered shipping movement—includes an offer to permanently lift sanctions if Iran agrees to dismantle its nuclear programme. Although Iran desperately needs economic relief as sanctions fuel public discontent, the Tehran government remains able to generate billions in revenue, especially through oil sales to China.
The Iranian government is estimated to have raked in revenues of US$43 billion (approximately Rp731 trillion) in 2024 from oil exports, forcing the Trump administration to consider a physical blockade of Iranian ports to bring them to the negotiating table. Analysts note that Tehran still holds strategic control, including dominance over the Strait of Hormuz.
This phenomenon is not unique to Iran. Based on US Treasury Department data, the annual sanctions list has surged dramatically from 880 in 2017 to more than 3,000 in 2024. Yet countries such as North Korea, Russia, and Venezuela demonstrate similar resilience.
Critics argue that the failure of sanctions lies not in the policy itself, but in its execution. Iran, Russia, and North Korea have built elaborate apparatuses to evade financial blockades using shell companies in Hong Kong, the United Arab Emirates, and Turkey. China’s financial system and the use of the yuan are central to these evasion efforts. China is Iran’s largest oil client. However, Western nations are hesitant to punish Chinese banks due to fears of massive global trade disruption. This gives these regimes time to find alternative solutions that ultimately weaken Washington’s bargaining power.
Although global sanctions are estimated to have cost Russia at least US$450 billion, technological advances such as cryptocurrency make enforcement increasingly difficult. Experts warn that if sanctions continue to be perceived as powerless, the US will lose one of its strongest non-military diplomatic tools in the future.