Today’s Morning Brief on Foreign Policy Passport gave insight to how Iran’s oil industry has been affected by Western sanctions in a response to Iran supporting Syria’s government in the Syrian Civil War. The IEA (International Energy Agency) has released information showing that Iran’s exports on oil have been cut by nearly a third, which has severely impacted Iran’s overall economy. The brief also states that the rial, the currency of Iran, has lost 40 percent of its value in this past month. That’s a devastatingly large hit to a currency, and the continued loss of value to the rial will certainly cause problems to trade and purchasing power in Iran for the near future.
EU foreign ministers have also agreed to impose separate sanctions on additional sectors of Iranian industry. Banking, shipping, and energy sectors are also going to be being targeted, ensuring that a widespread audience in Iran will be feeling the international pressures to end its support of the Syrian government.
Will these sanctions be successful? They have already proved to be successful in making clear to Iran what the western powers are opposed to. What is left to see is if Mahmoud Ahmadinejad and the other leaders of the Iranian government will change policies in order to loosen the sanctions imposed on them, or if they will stay stubborn to outside pressures and readily take the hit to the economy.
What was not mentioned by the IEA was the impact these sanctions have had on the United States and EU domestic oil prices, and if the sanctions on Iran are hurting consumers of the policing nations as well.