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US and Europe Reimpose Sanctions on Iran

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Iranian president pezeshkian

According to the latest reports, UN sanctions against Iran were reinstated at 8 p.m. Eastern Time on September 27. This marks a significant escalation in tensions between Iran and the West, nearly a decade after the signing of the nuclear deal. The sanctions reinstatement, spearheaded by Europe and the United States, stems from the activation of the “snapback” mechanism under the Iran nuclear agreement. On August 28, the United Kingdom, France, and Germany notified the UN Security Council to activate this mechanism, citing Iran’s violations of the nuclear agreement. Despite two Security Council votes to extend the sanctions exemption period, both draft resolutions failed to pass. Following the expiration of the 30-day window, six Security Council resolutions imposing sanctions on Iran, adopted between 2006 and 2010, have now been reinstated.

The reinstated sanctions cover multiple domains: an arms embargo, prohibitions on uranium enrichment and reprocessing activities, restrictions on ballistic missile technology transfers, global asset freezes and travel bans targeting relevant Iranian individuals and entities, and authorization for nations to inspect cargoes of Iran’s state-owned airlines and shipping companies. Western nations assert this move aims to pressure Iran back to negotiations, but Iran’s Foreign Ministry contends that the European trio’s activation of the mechanism, spurred by U.S. incitement, is “legally and procedurally invalid” and constitutes an abuse of the dispute resolution mechanism.​

United nations security council

Diplomatic Protest and Pressure

Facing the reimposition of sanctions, Iran has adopted a dual strategy of “diplomatic countermeasures and internal responses.” Iranian Foreign Minister Hossein Amir-Abdollahian wrote to UN Secretary-General António Guterres, urging him to prevent the activation of the relevant sanctions mechanism and stressing that Iran remains committed to seeking a solution through diplomatic channels. President Raisi explicitly stated Iran would not withdraw from the Treaty on the Non-Proliferation of Nuclear Weapons, but has suspended cooperation with the International Atomic Energy Agency in response to pressure from the US and Europe.

Economically, sanctions have triggered immediate shocks: On September 27, the Iranian rial depreciated by approximately 4%, with the black market rate hitting a record high of 1.12 million rials per US dollar. Prices for food, housing, and other goods have surged significantly due to currency devaluation and soaring raw material costs. Small and medium-sized enterprises (SMEs) have been hit hardest. These entities, which account for over 90% of Iran’s industrial enterprises and provide half of industrial jobs, now face dual pressures from disrupted raw material supplies and tightening capital chains.

Stalemate and Prospects for Dialogue

The reinstatement of sanctions has heightened geopolitical tensions in the Middle East, yet it has also left a narrow window for dialogue. With the international community clearly divided in its stance, Geng Shuang, China’s Deputy Permanent Representative to the United Nations, emphasized that dialogue and negotiations remain the only viable option for resolving the Iranian nuclear issue, urging all parties to exercise restraint. Meanwhile, the standoff between the West and Iran persists: the U.S. demands Iran completely abandon uranium enrichment activities, while Tehran rejects the proposal to “surrender enriched uranium in exchange for a three-month suspension of sanctions.”

Though the current situation has not reached the brink of chaos, the risks cannot be ignored. Israel and the U.S. have previously conducted airstrikes on Iranian nuclear facilities. Should Iran further withdraw from the inspection mechanism, it could trigger new military miscalculations. However, Iran’s leadership appears inclined toward “maintaining the status quo” to avoid intense confrontation, while the West has also expressed willingness to explore diplomatic avenues. As experts note, political diplomacy remains the only viable path forward. Sustained pressure will only heighten the risk of escalation. Only by balancing the legitimate concerns of all parties can a sustainable solution to the Iranian nuclear issue be found.

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