History Of International Sanctions On Iran

As the conflict between Iran and Israel intensifies, sanctions – which have been employed as a key instrument of foreign policy against Iran, remain critical. The hostilities, which commenced with Israel launching ‘preemptive strikes’ on Iran on June 13, aimed at crippling the Islamic Republic’s nuclear capabilities, precisely what the sanctions have attempted to regulate. These persistent sanctions date back to the 70s when Iran underwent a regime change, deepening its international isolation and intensifying regional instability. 

Iran served as the most sanctioned nation in the world until it was surpassed by Russia post its invasion of Ukraine in 2022. 

When Were The Sanctions Imposed On Iran?: A Timeline

Iran acceded to the Nonproliferation Treaty (NPT) in 1967 which restricted Iran from becoming a nuclear state. Under the Shah Mohammad Reza Pahlavi administration, Iran also signed the International Atomic Energy Association (IAEA) Safeguards Agreement, which prevents the spread of nuclear weapons by independent verification of non-proliferation commitments. 

The first sanctions on Iran were imposed in 1979 after a group of radical students seized the American Embassy in Tehran and took diplomats hostage. Iranian imports to the United States were banned and assets worth $12 billion were frozen. They were lifted in 1981 after the hostages were released. 

The sanctions were re-imposed in 1984 after US declared Iran as a state sponsor to terrorism. The sanctions prohibited all weapons sales and US assistance to Iran. 

The US okayed the Iran-Iraq Nonproliferation Act in 1992 declaring that “it is US policy to oppose any transfer of goods or technology to Iraq or Iran whenever there is reason to believe that such transfer could contribute to that country’s acquisition of chemical, biological, nuclear, or advanced conventional weapons.” 

In 1996, in response to Iran’s nuclear program, the US passed the Iran Sanctions Act. The Executive order 12957 issued by US President Bill Clinton prohibited certain transactions with respect to the development of Iranian petroleum industry, as it would divert funds to access or develop weapons of mass destruction or finance terrorism. The order stated that the US would levy sanctions on foreign companies that invest more than $20 million a year in Iran’s oil or gas sector. However, owing to protest by the European countries, the sanctions were not implemented until 2010. 

In 1996-97, Clinton banned all imports and exports both to and from Israel.

In February 2003, Iran invited the IAEA to visit the uranium enrichment program at Natanz. It claimed that the facility was employed to develop technology for peaceful purposes, which was refuted by the US. The US alleged that the enrichment is part of the drive to develop nuclear weapons, something it claims until now. This was the stance current US President Donald Trump took while proposing the nuclear deal to Iran before the Iran-Israel conflict began in 2025. 

In November 2004, Tehran entered into a temporary agreement with Germany, France and Britain to end uranium enrichment. The IAEA issued a clean bill of health to the nation that aided in avoiding security council intervention. 

However, Iran’s failure to comply led the Security Council to impose sanctions on Iran's trade in sensitive nuclear materials and technology. The IAEA offered Iran a 60-day grace period to halt uranium enrichment in exchange for the suspension of sanctions, which was not accepted. The UN Security Council, responding to Iran’s failure to comply with its demand to suspend uranium enrichment, unanimously adopted Resolution 1747. 

Nuclear-related sanctions were intensified by adopting Resolution 1803 in 2008. 

In 2010, the US Congress adopted the Comprehensive Iran Sanctions, Accountability, and Divestment Act. The sanction prevents firms from investing in Iran’s energy sector and also selling refined petroleum to Iran. It also listed certain Iranian banks which were red flagged for conducting business with. 

The UN Security Council also banned Iran from conducting tests of nuclear-capable ballistic missiles and imposed an embargo on the transfer of major weapons systems to Iran. 

In 2012, the European Union (EU) banned all imports of oil from Iran. The US also expanded on the “secondary sanctions” against companies doing business with Iran. 

Under excessive pressure from foreign sanctions, Iran and the P5+1 (the United States, the United Kingdom, France, Russia, China, and Germany) signed the Joint Plan of Action (JPOA) limiting the extent of foreign sanctions on Iran in exchange for halting uranium enrichment to 20 percent. It also included granting access to monitor Iranian nuclear sites to the IAEA. The JPA allowed Iran to obtain $4.1 billion worth of previously frozen assets and capped Iran’s crude oil exports at 1.1 million barrels per day. 

Both entities signed the Joint Comprehensive Plan of Action (JCPOA) in 2015 where Iran agreed to significantly reduce uranium enrichment in exchange for lighter sanctions. 

The IAEA ratified Iran’s measures and the secondary nuclear-related sanctions imposed by the US were lifted. The import and export of the majority of goods and services still remained prohibited. 

In 2018, under the Trump administration, a fourth set of sanctions against Iran came into effect. The White House claimed that the purpose of these sanctions was not regime change but instead forced Iran to change its regional policies, end support to regional militant groups and cease its ballistic missile programme. Trump asserted that there were flaws in the previous agreement that needed to be addressed. 

In 2020, the US further clamped down on its sanctions and targeted 18 Iranian banks. 

Since then, Iran has been under sanctions from the US and other western nations for its links to the members of the Axis of Resistance and also for enriching high-grade uranium. It is considered to be in violation of the NPT and hence considered as a threat by multiple western powers.