Several U.S. sanctions on Iran will activate at midnight, upon the expiration of a 90-day wind-down period for certain transactions with the country following President Donald Trump’s May 8 withdrawal from the Joint Comprehensive Plan of Action (JCPOA), otherwise known as the Iran nuclear deal.
Reactivated sanctions will include those on transactions dealing with raw or semi-finished metals, including aluminum, steel, coal and software for integrating industrial processes. Also included are sanctions on Iran’s automotive sector and its trade in gold or precious metals, according to FAQs released by Treasury on Monday.
“We anticipate that forthcoming regulations will define ‘goods or services used in connection with the automotive sector of Iran’ to include goods or services that contribute to (i) Iran’s ability to research, develop, manufacture, and assemble light and heavy vehicles, and (ii) the manufacturing or assembling of original equipment and after-market parts used in Iran’s automotive industry,” one of the FAQs says.
Not included in the automotive sanctions is the export of finished vehicles to Iran if no further assembly or manufacturing is required, as long as such transactions are consistent with U.S. sanctions, including not involving a sanctioned person, Treasury said.
Sanctions will take effect at midnight for transactions involving Iranian-origin foodstuffs and carpets, and transactions related to the purchase of commercial passenger aircraft will be prohibited, a senior Trump administration official said during a conference call with reporters Monday morning.
“The problem is that Iran does not use its commercial aviation for commercial purposes, it uses its commercial aviation to ferry people and weapons into the gray zone to help advance the goals of the Shia militias and proxies operating around the region,” another senior administration official said. “So the burden of responsibility is on Iran to use its commercial aviation for commercial aviation purposes.”
Iran “systematically” uses its aviation sector, including Mahan Air and several other airlines that have been designated on U.S. sanctions lists, to conduct malign activities in support of the Assad regime in Syria and the “brutal” activities it has undertaken, the first official said.
“The blame for this situation is perfectly clear: It lies with the Iranian regime that systematically destroyed that beautiful country over the last four decades,” a third senior administration official said in response to a question from a reporter on the call who suggested the U.S. should bear some responsibility for any increase in flight accidents that occurs after the re-imposition of aircraft sanctions.
Blocking sanctions are to take effect on Nov. 5 regarding persons determined to be part of the shipping, shipbuilding, and energy sectors of Iran; or to operate a port in Iran, according to Treasury’s FAQs.
The EU in a statement opposed the forthcoming sanctions, and reiterated that an EU Blocking Statute enters into force on Tuesday to protect EU companies “doing legitimate business” with Iran from the impact of U.S. sanctions.
“The remaining parties to the JCPOA have committed to work on, inter alia, the preservation and maintenance of effective financial channels with Iran, and the continuation of Iran’s export of oil and gas,” the EU’s statement says. “On these, as on other topics, our work continues, including with third countries interested in supporting the JCPOA and maintaining economic relations with Iran. These efforts will be intensified and reviewed at Ministerial level in the coming weeks.”
In a statement Monday, Trump said Iran's aggression has only increased since the JCPOA was concluded in 2015, noting the Iranian regime has since used a windfall of newly accessible funds to build nuclear-capable missiles, fund terrorism, and fuel conflict across the Middle East and beyond.
Trump added that his administration has designated 145 Iran-related companies and individuals.
"The JCPOA, a horrible, one-sided deal, failed to achieve the fundamental objective of blocking all paths to an Iranian nuclear bomb, and it threw a lifeline of cash to a murderous dictatorship that has continued to spread bloodshed, violence, and chaos," he said.