Sanctions as an Instrument of Foreign Policy
Economic sanctions are coercive measures imposed by one or more countries to pressure a target state to change its behaviour, short of military force.
- The US has two broad sanctions tracks against Iran: IEEPA-based executive sanctions (presidential authority), and CAATSA-type legislated sanctions
- Iran's economy has been severely constrained by sanctions: its oil exports dropped from ~2.5 mbpd pre-2018 to under 0.5 mbpd at the height of sanctions pressure, before recovering partially through China purchases
- Frozen assets: approximately $6 billion in Iranian funds were held in escrow accounts (notably in South Korea) as part of a humanitarian exchange deal — Iran demanded their release in the Islamabad talks
- Secondary sanctions: the US penalises third-country entities that deal with Iran — this is a mechanism that has deterred Indian companies from buying Iranian oil without waivers
● Tracked since April 13, 2026 · last seen September 21, 2026 · updates as the daily brief publishes
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