U.S. Reimposes Sanctions on Iran but Undercuts the Pain With Waivers

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Workers on an offshore oil platform in the Persian Gulf’s Salman Oil Field, operated by the National Iranian Offshore Oil Co. A new round of sanctions will affect businesses and individuals involved in Iran’s oil, banking, shipping and insurance sectors.CreditCreditAli Mohammedi/Bloomberg

By Gardiner Harris

Nov. 2, 2018

WASHINGTON — The Trump administration announced on Friday it is exempting eight countries from bruising sanctions that the United States is reimposing against Iran, undercutting its economic punishment for what officials called Tehran’s destabilizing activity in the Middle East.

The announcement came on the eve of a long-announced Nov. 5 deadline for nations to cease importing Iranian goods or face the financial penalties. It highlighted the Trump administration’s hard-nosed foreign policy that is popular with Republicans, days before crucial midterm elections.

Mike Pompeo, the secretary of state, did not identify the eight countries that were being granted six-month waivers but said they include two that are expected to end their imports of Iranian oil “within weeks.” The nations will have to re-apply for extended exemptions at the end of six months.

He also said the list of waivers is far smaller than the 20 nations that were exempted from American sanctions under President Barack Obama, and that the Trump administration had demanded much greater concessions in exchange.

The sanctions are “aimed at depriving the regime of the revenues it uses to spread death and destruction around the world,” Mr. Pompeo said. He added that he hoped to force changes that give “the Iranian people the opportunity to have the government not only they want but that they deserve.”

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The U.S. was the only country to leave the multilateral nuclear deal with Iran. The Trump administration quickly moved to snap back crippling sanctions on Iran. We spoke with the country’s top diplomat and young Iranians to see how these moves have impacted their lives.Published OnNov. 2, 2018

The final round of penalties target more than 700 businesses, individuals and other entities involved in Iran’s oil, banking, shipping, shipbuilding and insurance sectors. Mr. Pompeo and Steven Mnuchin, the Treasury secretary, jointly announced the return of all the previously imposed sanctions, which go into effect Monday, in a call with journalists.

The penalties were promised in May, when President Trump announced that the United States was withdrawing from the 2015 deal with world powers to limit Iran’s nuclear program.

Already, oil buyers in Europe, Japan and South Korea have largely eliminated imports from Iran. But China, India and Turkey continue to make such purchases.

Iran’s oil exports have plunged to 1.5 million barrels per day from 2.5 million barrels in May, according to administration officials. The economic squeeze has hammered Iran’s currency, the rial, which officials and experts say has since lost more than two-thirds of its value.

The penalties seek to force Tehran to end what the United States views as Iran’s destabilizing activities in the Middle East, including its support for Hezbollah in Lebanon, Hamas in Gaza and Houthi rebels in Yemen.

Iranian leaders have insisted they have no intention of rewarding Mr. Trump’s decision to leave the nuclear accord by acceding to his demands or even opening a dialogue; just this week, Danish authorities accused Iran of attempting to assassinate an Arab separatist leader living in Denmark.

Whether Tehran will be able to hold out while its economy suffers is unclear. Iran undertook some of its most aggressive regional moves during the previous round of punishing sanctions between 2012 and 2015.