This month, the United States imposed on Iran its most draconian round of sanctions yet. These measures made clear something the global community has long known: When it comes to international finance, Washington sets the rules for others to follow. Though some governments, led by the European Union, have announced initiatives to break free of this U.S. dominance, their policies will likely fail. Less publicized trends, however, are already eroding U.S. financial power and may make aggressive U.S. sanctions policies untenable.
When U.S. President Donald Trump announced in May that he would reimpose sanctions on Iran lifted under the 2015 nuclear deal, the effect was swift. Companies began to comply, independently of their governments’ stances toward Tehran. Even as the EU moved over the summer to make it illegal for its companies to comply with the new U.S. sanctions, firms were already turning away from Iran.
Read the full article in Foreign Policy.
More from CNAS
ReportsChina’s Digital Currency
China is pushing aggressively to be a global leader in financial technology....
By Yaya J. Fanusie & Emily Jin
ReportsSanctions by the Numbers
Russia is the second-most sanctioned state by the United States in the past decade, with 742 designations....
By Francis Shin
CommentarySharper: Day One
The Biden-Harris administration will confront a range of national security challenges from the moment it takes office....
By Chris Estep
CommentaryCould Europe’s INSTEX Help Save the Iran Nuclear Deal?
Supporting INSTEX would illustrate not only that “America is back,” but that the Biden administration is taking humanitarian concerns seriously without sacrificing security in...
By Francis Shin