Trump Threatens Countries Aiding Iran: How Effective Are US Sanctions?
United States President Donald Trump has launched a threat of massive economic sanctions against countries still maintaining trade relations with Iran. Via the Truth Social platform on Saturday (22/8), Trump described the move as the most devastating economic operation ever directed against a country. Trump stressed that Washington would apply economic pressure and isolation on an unprecedented scale. Responding to this, Iranian Foreign Minister Abbas Araghchi assessed Trump’s statement as merely an attempt to divert attention from America’s internal crises, including swelling debt and surging interest costs.
As an OPEC member, crude oil is the backbone of Iran’s economy. Before the conflict heated up, Iran was able to export 1.3 million to 1.5 million barrels per day (bpd) with revenues reaching US$3.45 billion per month. However, military escalation and the closure of the Strait of Hormuz in March triggered a ship blockade by the US. Data shows a significant impact on Iran’s oil trade volume throughout the current year.
Governor of the Central Bank of Iran, Abdolnaser Hemmati, confirmed a sharp decline in non-oil trade. In the period from 21 March to 16 August, the value of Iran’s non-oil exports was recorded at US$15 billion, while imports reached US$17 billion. Overall, Iran’s total trade slumped 24% compared to the previous year.
Although the United Arab Emirates has announced an indefinite embargo, a number of countries such as China, Turkey and Pakistan continue to maintain trade relations. Frederic Schneider of the Middle East Council on Global Affairs noted that China still absorbs most of Iran’s oil exports, which had touched a record 1.7 million bpd through informal channels.
International law expert Shantanu Singh explained that legally, the US does not have the authority to impose a total embargo without authorisation from the UN Security Council. Unilateral US sanctions are only effective in restricting the use of financial institutions and the US dollar system.
Trump’s efforts to isolate Iran completely are predicted to face a dead end at the multilateral level. As permanent members of the UN Security Council, Russia and China hold veto rights that can cancel any international embargo resolution proposed by Washington.