CRS Says International Sanctions Are Affecting Iran's Economy
The Congressional Research Service has issued a report on the growing international consensus to adopt progressively strict economic sanctions against Iran over concerns of its nuclear program.
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According to the report, because so many major economic powers have imposed sanctions on Iran, the sanctions are having a growing effect on Iran’s economy. The sanctions are reinforcing the effects of Iran’s economic mismanagement and key bottlenecks. The U.S. and its allies appear to agree that sanctions should continue to target Iran’s energy sector and should try to isolate Iran from the international financial system.
Among other indicators that the sanctions hare having an effect on Iran, there has been a stream of announcements by major international firms since early 2010 that they are exiting the Iranian market. The energy sector provides about 80% of government revenues. Iran’s oil production has fallen slightly, to about 3.9 million barrels per day, from over 4.1 million barrels per day several years ago.
(See ITT's Online Archives or 05/24/11 news, 11052423, for BP summary of President Obama's Executive Order to implement certain sanctions on Iran.
See ITT's Online Archives or 05/24/11 news, 11052451, for BP summary of a State Department fact sheet on firms that reduced their business with Iran's energy sector.
See ITT’s Online Archives or 03/29/11, 06/30/10, and 09/20/10 news, 11032913, 10063049, and 10092013, for BP summaries of the major trade-related provisions of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (CISADA).)
(CRS RS20871, dated 04/04/11)