American sanctions bring more agony to Iran’s dysfunctional economy

IT TOOK two years to negotiate a nuclear deal with Iran—and a few strokes of a pen to undo it. On August 6th President Donald Trump signed an executive order restoring sanctions aimed at Iran’s car industry, its trade in gold and its access to dollars, among other things. It makes good on the president’s promise to withdraw from the deal, signed in 2015, which gave Iran sanctions relief in exchange for limits on its nuclear programme. The sanctions will hurt. Whether they will accomplish anything else is up for debate.

Contrary to his campaign promise, Mr Trump cannot unilaterally “tear up” the deal. It has five other signatories: Britain, France, Germany, Russia and China. All say it is working, an assessment backed by the International Atomic Energy Agency, which certifies Iran’s compliance.

In an effort to preserve the agreement, the European Union has instructed EU firms not to comply with the sanctions and allowed them to sue in court to recover damages resulting…

Powered by WPeMatico