The Trump White House announced the restoration of sanctions against Iran, aimed at choking Tehran’s economy and, as Secretary of State Mike Pompeo noted, “depriving the regime of the revenues it uses to spread death and destruction around the world.”
Pomeo said that the sanctions are “aimed at fundamentally altering the behaviour of the Islamic Republic of Iran”.
Pompeo further added…
“Our ultimate aim is to compel Iran to permanently abandon its well-documented outlaw activities and behave as a normal country.”
The US Secretary of State also issued a list of 12 demands that Iran must meet to see the sanctions lifted.
Iran’s shipping, financial and energy sectors will be affected by the crippling sanctions, with more than 700 businesses, individuals and other entities targeted.
Treasury Secretary Steven Mnuchin weighed in saying…
“We are sending a very clear message with our maximum pressure campaign: that the US intends to aggressively enforce our sanctions.”
The Duran’s Alex Christoforou and Editor-in-Chief Alexander Mercouris discuss the reinstatement of US sanctions on Iran, and how despite EU defiance, European leaders, and the rest of the world (with the exception of Russia and China), will fall in line with American demands to cease trade with Iran.
Zerohedge reports that SWIFT has caved to US pressure, defying the EU and proceeding to cut off Iranian banks.
Shortly after Trump reimposed nuclear sanctions on Tehran on November 5, the international financial messaging system SWIFT announced the suspension of several Iranian banks from its service. “In keeping with our mission of supporting the resilience and integrity of the global financial system as a global and neutral service provider, SWIFT is suspending certain Iranian banks’ access to the messaging system,” SWIFT said.
The Belgium-based financial messaging service added:
“This step, while regrettable, has been taken in the interest of the stability and integrity of the wider global financial system.”
SWIFT’s decision has further undermined EU efforts to maintain trade with Iran and save an international deal with Tehran to curtail its nuclear program, after President Donald Trump pulled the US out in May. Being cut off from SWIFT makes it difficult for Iran to get paid for exports and to pay for imports, mostly of oil.
As a further note, the EU was one of the few entities not to receive a sanctions waiver from the US earlier this week.
The European Commission was understandably displeased, and on Wednesday said it found the SWIFT decision “regrettable”
“We find this decision rather … regrettable,” Commission foreign affairs spokeswoman Maja Kocijancic told a briefing.
As we reported over the weekend, last Friday Treasury Secretary Steven Mnuchin warned SWIFT it could be penalized if it doesn’t cut off financial services to entities and individuals doing business with Iran. However, by complying with Washington, SWIFT now faces the threat of punitive action from Brussels.
Washington has been pressuring SWIFT to cut off Iran from the financial system as it did in 2012 before the nuclear deal. Six years, ago the EU imposed sanctions on Iranian banks, forcing SWIFT, which is subject to EU laws, to cut financial transactions with at least 30 of Iran’s financial institutions, including the central bank.
Iranian banks were reconnected to the network in 2016 after the Iran nuclear deal came into force, allowing much needed foreign cash to flow into Tehran’s coffers.
The statements, views and opinions expressed in this column are solely those of the author and do not necessarily represent those of The Duran.