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Iran Sanctions

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Congressional reports

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Strict sanctions on Iran s key energy and financial sectors harmed Iran s economy. The economic pressure coupled with the related June 14, 2013, election of the relatively moderate Hassan Rouhani as Iran s president contributed to Iran s accepting a November 24, 2013, six-month interim agreement Joint Plan of Action, JPA that halts expansion of its nuclear program in exchange for modest sanctions relief. On July 18, 2014, the interim agreement was extended until November 24, 2014. The economic pressure of sanctions included the following Oil exports fund nearly half of Iran s government expenditures and, by late 2013, sanctions had reduced Iran s oil exports to about 1 million barrels per day far below the 2.5 million barrels per day Iran exported during 2011. During 2012-2013, the loss of revenues from oil, coupled with the cut-off of Iran from the international banking system, caused a sharp drop in the value of Iran s currency, the rial raised inflation to over 50 and cut off Iran s access to most of its hard currency held outside the country. Iran s economy shrank by about 5 in 2013 as many Iranian firms reduced operations and loans became delinquent. The JPA agreement, including the approximately 7 billion in sanctions relief during the interim period, of which 4.2 billion 700 million per month was access to hard currency from oil sales, began implementation on January 20, 2014, and provisions of several laws and executive orders were waived or suspended that day. The JPA extension until November 24, 2014, continues all sanctions relief provisions, including 2.8 billion in access to hard currency 700 million per month multiplied by four months of extension. Citing some improvements in Iran s economy and renewed international business contacts with Iran, some in Congress believe that economic pressure on Iran needs to increase to shape a final nuclear deal and ensure that the Iran sanctions architecture does not collapse. On the other hand,

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  • Economics and Cost Analysis
  • Government and Political Science

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