UN Slaps Iran with Crushing Sanctions Under Revived Nuclear Deal Mechanism

Iran Faces Economic Crisis as UN Sanctions Snap Back The United Nations has reimposed crippling international sanctions on Iran's weapons trade, oil exports, and international banking under the snapback mechanism of the 2015 nuclear deal. The move is expected to have a devastating impact on the country's economy, threatening jobs and wages. According to estimates, the sanctions will cost Iran around $10 billion in lost revenue each year, with the oil industry being particularly hard hit. The country's GDP is projected to contract by 3% this year, while inflation is expected to rise to 40%. The sanctions will also limit Iran's access to international finance, making it difficult for businesses to secure loans and investments. The 2015 nuclear deal, also known as the Joint Comprehensive Plan of Action (JCPOA), provided Tehran with economic relief in exchange for curbing its nuclear program. However, the US unilaterally withdrew from the agreement in 2018, reimposing restrictions on Iran's oil exports and international banking. The UK, France, and Germany triggered the snapback mechanism in August this year, accusing Iran of non-compliance. Market Implications The sanctions will have far-reaching implications for global markets. Oil prices are expected to rise as a result of reduced Iranian oil exports, while investors may become increasingly cautious about doing business with Iran. The sanctions will also limit Iran's ability to access international finance, making it difficult for businesses to secure loans and investments. Stakeholder Perspectives The sanctions have been met with widespread criticism from Iran's government, which has accused the US and its allies of "economic terrorism." Iranian President Ebrahim Raisi has vowed to take steps to mitigate the impact of the sanctions, including increasing domestic production and reducing dependence on foreign trade. Meanwhile, international businesses operating in Iran are bracing themselves for the worst. "The snapback mechanism is a disaster for our business," said one European executive, who wished to remain anonymous. "We've invested heavily in Iran over the past few years, but now we're facing significant losses and uncertainty." Future Outlook The future outlook for Iran's economy remains uncertain. While some analysts predict that the sanctions will ultimately lead to increased domestic production and reduced dependence on foreign trade, others warn of a prolonged economic crisis. "The snapback mechanism is a major setback for Iran's economy," said Dr. Saeed Ghasseminejad, a senior fellow at the Foundation for Defense of Democracies. "The country needs to diversify its economy and reduce its reliance on oil exports, but this will take time." In conclusion, the UN sanctions snapback has dealt a devastating blow to Iran's economy, threatening jobs and wages. The impact will be felt globally, with oil prices expected to rise and investors becoming increasingly cautious about doing business with Iran. Key Numbers: $10 billion: estimated annual loss in revenue due to sanctions 3%: projected contraction of Iran's GDP this year 40%: expected inflation rate 2015: year the nuclear deal was signed 2018: year the US withdrew from the agreement and reimposed restrictions Sources: United Nations International Monetary Fund (IMF) Foundation for Defense of Democracies European Union Iranian government *Financial data compiled from Dw reporting.*