How US sanctions will hit Iran

Iranian protesters voice their opposition to the US on the 39th anniversary of the storming of the US embassy in Tehran. The country’s plunging currency has left the population counting the cost of sanctions. (AFP)
Updated 05 November 2018
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How US sanctions will hit Iran

  • The US withdrawal from the nuclear deal has already had a huge effect, including the devaluing of the Iranian rial and oil exports falling by about a million barrels a day
  • The impact of the sanctions was felt early on, with their announcement in May driving many companies to abandon Iran, causing the value of its currency to plummet

DUBAI: While Iran braces for a new set of sanctions on Monday that will target its oil, shipping, energy and banking sectors, US measures have already taken a heavy toll on the Islamic republic.
As part of the new sanctions, the US Treasury Department will add more than 700 names to its list of blocked entities as of Nov. 5, with the US working closely with countries to cut off Iranian oil exports as much as possible.
The State Department said on Friday it has closed the “Obama-era condensate loophole,” which allowed countries to continue importing the byproducts of oil and natural gas from Iran even while sanctions were in place.
“This loophole allowed millions of dollars to continue to flow to the regime,” said Secretary of State Mike Pompeo. “These sanctions hit at the core areas of Iran’s economy, and they are necessary to spur changes we seek on the part of the regime. The maximum pressure we imposed has caused the rial to drop dramatically, the country’s Cabinet is in disarray, and the Iranian people are raising their voices even louder against a corrupt and hypocritical regime.”
The impact of the sanctions was felt early on, with their announcement in May driving many companies to abandon Iran, causing the value of its currency to plummet.


“The impact will be severe, and we see it in the acute economic situation in Iran today,” said Riad Kahwaji, founder and CEO of the Institute for Near East and Gulf Military Analysis in Dubai. “They will definitely have a gradual escalating impact on economic conditions and, subsequently, on the relations between Iran and the US. The main objective from the US side is to force Iran to accept most — if not all — of its 12 conditions and demands.”
Kahwaji said the sanctions’ primary objective is to get Iran to return to negotiations and agree to a new treaty, whereby it would restrict its ballistic missile program and remove the so-called sunset clause for its nuclear program. That would entail banning Iran from returning to enrichment activities.
“The current restrictions will become permanent, including (elements) related to what the US calls Iran’s behavior in the region,” he said. “So the ultimate objective is to pressure Iran to get back to the table of negotiations as per the terms of US President Donald Trump’s administration.”
It is believed that the new sanctions will compel Tehran to renegotiate the Joint Comprehensive Plan of Action (JCPOA). Experts say Trump believes the last deal was the worst ever struck by the US.
“The sanctions will force Iran’s hand as Mike Pompeo argued that at the rate that the Iranian economy is declining, and protests are intensifying, it should be clear to the Iranian leadership that negotiations are the best way forward,” said Dr. Albadr Al-Shateri, politics professor at the National Defense College in Abu Dhabi.
“However, if history is any guide, the Iranian regime will (complain) but try to approach the administration in back channels. The purpose of this secretive communication is to give the impression of Iran’s willingness to compromise and thus prevent the further deterioration of the relationship with the US lest the Iran hawks in Washington push for military action.”
He said that, in parallel, Iran will look more defiant in the public eye, with the potential of the Islamic republic dragging negotiations out for a couple of years.
“(It might) give few concessions in regional crisis points like Syria and Yemen, and hope for a regime change in Washington,” he said. “Perhaps a democratic administration will be more susceptible to a new deal that will reaffirm the JCPOA with a different nomenclature. The new sanctions might prove to be costly if the Kingdom of Saudi Arabia, with spare production capacity, is unable or unwilling to put more oil in the market.”
Al-Shateri said the expected increase in oil prices might offset Iran’s loss of oil exports because of the US sanctions. “Moreover, the US attempt to cut off Iran from the international financial system, SWIFT, might also spur the Europeans and others, who are against the US withdrawal, to find a different financial system to circumvent the dollar exchange,” he said. “That may spell the beginning of the end of the dollar hegemony.”
Controversy arose when the sanctions were announced in terms of Iran’s access to the SWIFT financial system and its potential to bypass the sanctions through it. “SWIFT is no different than any other entity, and we have advised SWIFT the Treasury will aggressively use its authorities as necessary to continue intense economic pressure on the Iranian regime,” said Steven Mnuchin, US Secretary of the Treasury.
“SWIFT (will) be subject to US sanctions if it provides financial messaging services to certain designated Iranian financial institutions. We have also advised SWIFT that it must disconnect any Iranian financial institution that we designate as soon as technologically feasible to avoid sanctions exposure.”
Humanitarian transactions to non-designated entities will be allowed to use the SWIFT messaging system as they have done before, but banks were warned to be cautious that these are not disguised transactions, or they could be subject to certain sanctions.
“The list of banks, which will be substantially longer than last time, will be coming out (in the coming days),” he said. “And as it relates to monitoring transactions, financial institutions have liability for any transactions that go through SWIFT or any other mechanisms. It’s our expectation that will be implemented as soon as technologically feasible.”
The Iranian public is also expected to be affected by the economic sanctions.
“On the domestic front, there will be a major impact on Iran’s ability to fund,” Kahwaji said. “It will be (faced with) a choice — whether to continue giving priority to its international operations serving its expansionist schemes or use whatever cash it has to ease the internal situation and serve the public. We will have to wait and see how the Iranians try to manage the situation in government, but it’s not going to be easy as the situation will worsen by the day.”
He described the sanctions as the “strongest tool” the US holds, before resorting to military means, to pressure the Iranian regime to adhere to its demands.
“Essentially the sanctions that were taken off are snapping back,” said Katherine Bauer, the Blumenstein-Katz Family Fellow at the Washington Institute. “Over this 180-day wind-down period, what we have seen is firms and financial institutions have reacted very quickly; likely they had plans on the shelf as there was a snap-back scenario.”
The US withdrawal from the nuclear deal has already had a huge effect, including the devaluing of the Iranian rial and oil exports falling by about a million barrels a day. “This is a substantial drop,” she said, adding that the ultimate goal was to deprive the regime of revenue it gets from oil.
Experts predict oil exports will drop further in the near future. “There is a clear loss of revenue coming from a significantly reduced sale of oil,” said former ambassador Dennis Ross, a counselor and William Davidson Distinguished Fellow at the Washington Institute for Near East Policy. “We have also seen the decline of the rial. For the Iranian public, they have seen their bank accounts affected as a result.”
While the International Monetary Fund had projected Iran’s economy to reflect a 4 percent growth next year, he said it has now updated its projection to an estimated 3.6 percent decline. “There are real pressures in play and Iran is certainly going to be feeling those pressures,” he said.
“We know that the Iranians developed all sort of techniques to avoid the sanctions in the past, and we are likely to see this again. Oil exports, for example, are bound to be leaked through Iraq, and potentially through Afghanistan and Turkey.”


Over 10,000 Palestinians detained in Israeli jails, excluding Gazans in military confinement

Updated 3 sec ago
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Over 10,000 Palestinians detained in Israeli jails, excluding Gazans in military confinement

  • 3,629 Palestinians detained under administrative detention, a practice allowing Israeli authorities to hold individuals in prison without trial
  • Since the 1967 occupation, over 800,000 Palestinians have spent time in Israeli jails

LONDON: More than 10,000 Palestinians are currently held in Israeli prisons, the highest prisoner count since the Second Intifada in 2000, Palestinian prisoners’ advocacy groups reported on Tuesday.

As of early July, some 10,800 prisoners are said to be held in Israeli detention centers and prisons, including 50 women — two of whom are from the Gaza Strip — and over 450 children. The figures do not include individuals detained in Israeli military camps such as Sde Teiman, where many people from Gaza are believed to be held and subjected to torture.

A total of 3,629 Palestinians are currently detained under administrative detention, a practice that allows Israeli authorities to hold individuals in prison without trial for six months, which is subject to indefinite renewals.

A further 2,454 detainees are designated as “unlawful combatants,” including Palestinians and Arabs from Lebanon and Syria.

Since the 1967 occupation of the Gaza Strip, the West Bank and East Jerusalem, over 800,000 Palestinians have spent time in Israeli jails, according to a UN report in 2023.


Israel military says struck Hamas militant in north Lebanon

People gather near a damaged car after the Israeli military said in a statement that it struck a “key” figure from Hamas.
Updated 3 min 14 sec ago
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Israel military says struck Hamas militant in north Lebanon

  • Israel has kept up strikes against Hezbollah despite the ceasefire
  • “A short while ago, the (Israeli military) struck a key Hamas terrorist in the area of Tripoli in Lebanon,” Israeli military said

JERUSALEM: Israel’s military said Tuesday it had struck a Hamas militant in the Lebanese city of Tripoli, in its first strike on the country’s north since a November ceasefire ended hostilities with Hezbollah.
“A short while ago, the (Israeli military) struck a key Hamas terrorist in the area of Tripoli in Lebanon,” the military said in a statement, without providing further details.
The military said earlier that it had killed two militants of the Lebanese armed movement Hezbollah in two separate attacks on southern Lebanon Monday.
It identified one of them as Ali Haidar, a local Hezbollah commander whom it said was involved in restoring militant infrastructure sites in the area.
Hezbollah’s clout has diminished after it emerged bruised from a conflict with Israel last year, fueled by Israel’s war against Hamas in Gaza.
Israel, however, has kept up strikes against Hezbollah despite the ceasefire.
Israel said last week that it was “interested” in striking peace agreements with Lebanon and neighboring Syria.
The ceasefire aimed to end hostilities between Israel and Hezbollah after the Lebanese group launched a wave of cross-border attacks on northern Israel in solidarity with its Palestinian ally Hamas following its October 7, 2023 attack on Israel.


Four dead in fire at major Cairo telecoms hub, Internet disrupted

Fire fighters battle flames for the second day after a fire engulfed the main telecom company building in Cairo, Egypt, Tuesday.
Updated 14 min 13 sec ago
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Four dead in fire at major Cairo telecoms hub, Internet disrupted

  • Internet and phone connections were still heavily disrupted in Cairo on Tuesday, with the Egyptian stock exchange suspending operations

CAIRO: At least four people were killed and 27 injured in a fire at a major telecomms center in Egypt’s capital that caused widespread disruptions, the health ministry said on Tuesday.
Internet and phone connections were still heavily disrupted in Cairo on Tuesday, with the Egyptian stock exchange suspending operations.
Flights into and out of the capital had also been affected by the fire, which began on Monday evening, although by the following morning the civil aviation ministry said all flights had resumed following delays caused by the blaze.
Gas and electricity outages were also reported on Monday by Cairo governor Ibrahim Saber.
“Civil defense forces recovered four bodies from the scene of the incident,” the healthy ministry said in a statement.
The authorities are yet to announce a cause for the fire, nor has any information been given about the 27 injured.
Local media reported that the fire at the Ramses Exchange, the former communications ministry headquarters, was extinguished on Monday night.


Jordanian helicopters continue to help Syria in containing wildfires for 6th day

Updated 08 July 2025
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Jordanian helicopters continue to help Syria in containing wildfires for 6th day

  • Wildfires in Latakia’s rugged Jabal Turkman region were sparked by combination of unexploded ordnance, drought
  • Damascus sought support from the EU to combat wildfires on Tuesday

LONDON: Jordanian air forces continue to assist authorities in Syria’s coastal region to combat wildfires, which have damaged more than 10,000 hectares of land over six days.

Jordan was one of the first countries to dispatch help to the Syrian Arab Republic, alongside Lebanon and Turkiye, all neighboring countries. The UN also deployed teams to assist Syria, while on Tuesday, Damascus sought support from the EU to combat the fires.

The wildfires in Latakia’s Jabal Turkman region were sparked by a combination of unexploded ordnance from the country’s civil war as well as high temperatures and drought.

Jordan sent two Black Hawk helicopters with firefighting crews and equipment. The Jordanian mission is working to prevent the further expansion of fires and mitigate the impact on local communities and ecosystems, Petra reported.

The wildfires have been difficult to contain due to rugged terrain, dense vegetation, landmines, unexploded ordnance and high winds, which have further complicated response efforts, authorities said.

The decision to help Syria demonstrates Jordan’s commitment to providing humanitarian support and responding to regional crises, Petra added.


Qatar says ‘we will need time’ for Gaza ceasefire

Updated 08 July 2025
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Qatar says ‘we will need time’ for Gaza ceasefire

  • Qatar says the meetings in Doha are focused on a framework for the talks
  • US President Donald Trump earlier voiced optimism about a possible breakthrough

DOHA: Qatar said Tuesday more time was needed for negotiations for a Gaza ceasefire between Israel and Hamas, after US President Donald Trump voiced optimism about a possible breakthrough.

“I don’t think that I can give any timeline at the moment, but I can say right now that we will need time for this,” Qatar’s foreign ministry spokesman Majed Al-Ansari said as indirect negotiations continued into a third day in Doha.

Israel’s Prime Minister Benjamin Netanyahu was in Washington, meanwhile, on his third visit to the White House since Trump returned to power.

Trump, who is pushing for a ceasefire, expressed confidence a deal could be reached, saying: “I don’t think there is a hold-up. I think things are going along very well.”

Qatar, a mediator along with the United States and Egypt, said the meetings in Doha were focused on a framework for the talks, while a Palestinian official close to the negotiations said no breakthrough had been achieved so far.

Trump’s special envoy Steve Witkoff was set to join the talks in Doha this week.

On the ground, five Israeli soldiers were killed in combat in northern Gaza — one of the deadliest days this year for Israeli forces in the Palestinian territory.

Gaza’s civil defense meanwhile reported 29 killed in Israeli strikes on Tuesday.

Israel and Hamas began the latest round of negotiations on Sunday, with representatives seated in separate rooms within the same building.

At the White House, sitting across from Netanyahu, Trump said Hamas was willing to end the Gaza conflict, now in its 22nd month.

“They want to meet and they want to have that ceasefire,” Trump said when asked if ongoing clashes would derail talks.

An Israeli official accompanying Netanyahu to Washington said the proposal under discussion was “80-90 percent of what Israel wanted.”

“I believe that with military and political pressure, all the hostages can be returned,” the official told Israeli media.

According to Ariel Kahana of Israel Hayom daily, “President Trump and his advisers are currently exerting considerable effort to reach an agreement that would lead to the release of the hostages and could even end the war in Gaza.”

However, far-right National Security Minister Itamar Ben Gvir opposed negotiations with Hamas, saying that “there is no need to negotiate with those who murder our fighters; they must be torn to shreds.”

Netanyahu described the loss of five soldiers in Gaza as a “difficult morning” and mourned “our heroic soldiers who risked their lives in the battle to defeat Hamas and free all our hostages.”

Israeli military correspondents reported the deaths occurred due to improvised explosive devices near Beit Hanun in northern Gaza.

According to the Israeli military, 450 soldiers have been killed in the Gaza military campaign since the start of the ground offensive on October 27, 2023.

Gaza’s civil defense agency reported 29 people killed in Israeli strikes across the territory, including three children.

Mahmud Bassal, a spokesman for the agency, said nine of those were killed in a drone strike on a camp for displaced people in southern Gaza.

“I was in front of my tent preparing breakfast for my four children – beans and a bit of dry bread. Suddenly, there was an explosion,” said Shaimaa Al-Shaer, 30, who lives in the camp.

Media restrictions in Gaza and difficulties in accessing many areas mean AFP is unable to independently verify the tolls and details provided by the civil defense agency.

There was no immediate comment from the Israeli military when contacted by AFP.

The war has created dire humanitarian conditions for Gaza’s more than two million people.

While Israel has the full backing of the Trump administration, the US leader has increasingly pushed for an end to what he called the “hell” in Gaza and said on Sunday he believed there was a “good chance” of an agreement this coming week.

“The utmost priority for the president right now in the Middle East is to end the war in Gaza and to return all of the hostages,” White House Press Secretary Karoline Leavitt said.

The US proposal included a 60-day truce, during which Hamas would release 10 living hostages and several bodies in exchange for Palestinians detained by Israel, two Palestinian sources close to the discussions had earlier said.

Hamas was also demanding certain conditions for Israel’s withdrawal, guarantees against a resumption of fighting during negotiations, and the return of the UN-led aid distribution system, they said.

Of the 251 hostages taken by Palestinian militants during the October 2023 Hamas attack that triggered the war, 49 are still held in Gaza, including 27 the Israeli military says are dead.

Hamas’s October 2023 attack resulted in the deaths of 1,219 people, mostly civilians, according to an AFP tally based on Israeli official figures.

Israel’s retaliatory campaign has killed at least 57,575 people in Gaza, also mostly civilians, according to the Hamas-run territory’s health ministry. The UN considers the figures reliable.