On Sunday, March 26, 2017, the Iranian State Agency (IRNA) announced the imposition of sanctions by Iran on 15 American companies.  While the move is widely seen as Iran responding to recent and on-going enforcement action taken in the U.S., such action is certainly creating ever more complex circumstances in the region.

In explaining the sanctions imposed, IRNA stated:  “[t]he sanctioned companies have, directly and/or indirectly, been involved in the brutal atrocities committed by the Zionist regime in the occupied Palestinian territories . .. Imposition of new sanctions by the US is based on fabricated and illegitimate pretexts and amount[s] to an action against the international regulations”.  IRNA also repeated the oft-asserted claim that strengthening Iran’s missile system is “enhancement of the country’s defense capabilities” and is not aimed towards aggression.

IRNA further emphasized Iran’s resolve to develop its peaceful missile power as part of the nation’s “inalienable” right to enhance its deterrence and defense in the face of claimed threats. The consequence of these sanctions is that any assets found in country will be seized, business with these companies is forbidden and their officials will be denied visas by Iran. Given none of these countries is thought to have a presence in Iran, the impact of these sanctions is seem as symbolic at best.

As grounds for its action, Iran asserts the listed companies support Israel’s actions which Iran characterizes as violating UN Security Council Resolution 2334, calling on Israel to stop its settlement expansions.  Based on an article found at: http://www.presstv.ir/Detail/2017/03/26/515663/Iran-US-Sanctions, the companies on which Iran imposed sanctions are:

-Beni Tal security company has worked with the Israeli military.

-United Technologies has sold Black Hawk military helicopters to Israel.

-Raytheon has supplied Israel with technologically advanced military weapons.

-ITT Corporation has provided the Israeli military with equipment.

-Re/Max has been involved in real estate transactions in Israeli settlement areas.

-Oshkosh Corporation has been supplying the Israeli military with parts for armored vehicles.

-Magnum Research Inc. has worked with Israeli military industries in the manufacturing of firearms and military equipment.

– Kahr Arms has provided spare parts and developed light weapons used by the Israeli army.

– M7 Aerospace LP, purchased by U.S. subsidiary of the Israeli military contractor Elbit Systems, has been active in the production and development of Israeli radar and missile systems.

– Military Armament Corporation has provided services and equipment linked to the Israeli police.

– Lewis Machine and Tool Company has provided weapons spare parts and services to the Israeli military’s arms industry.

– Daniel Defense has provided the Israeli military’s arms industry with spare parts and services.

– Bushmaster Firearms International has provided the Israeli military with spare parts and services for weapons manufacturing.

-O.F. Mossberg & Sons has supplied Israel with weapons for use by the military and police forces.

-H-S Precision, Inc. has provided the Israeli military with weapons manufacturing technology.

The Iranian Foreign Ministry stated the list could expand to include more entities.  This action by  Iran is seen as another  reactionary step responding to actions take or threatened by the U.S. against Iran.

In the last week alone, the U.S. has imposed significant sanctions for violations of the U.S. export laws related to aiding Iran’s ballistic missile development. There were sanctions imposed on 30 foreign companies or individuals for transferring sensitive technology and violating export controls  in violation of the Iran, North Korea and Syria sanctions.  Eleven companies or individuals from China, North Korea or the United Arab Emirates were sanctioned for technology transfers seen as possibly boosting Iran’s ballistic missile program. Plus, nineteen entities or individuals were sanctioned for other violations under the Iran, North Korea and Syrian sanctions regimes.

In addition, in the U.S. Senate, also last week, a bipartisan bill was introduced which would impose mandatory sanctions on those involved in Iran’s ballistic missile program. Remarkably, this bill includes a provision which would impose terrorism sanctions on Iran’s Revolutionary Guard, the first time a recognized government entity would be so designated.  The bill includes a provision which would require  “the president to block the property of any person or entity involved in specific activities related to the supply, sale, or transfer of prohibited arms and related material to or from Iran”. See S.722. See also H.R. 1698, the text of both has yet to be published.

Also contributing to the situation is Iran’s on-going unhappiness with its progress to reintegrate into the international system of banking and business. The situation is so complex that European bankers have repeatedly asked the U.S. government to provide briefings in order that they might clearly understand their potential exposure under the current American economic sanctions regimes. The level of knowledge Iran had about American sanctions before JCPOA (Joint Comprehensive Plan Of Action, which took effect in October 2015) is not clear in terms of whether they understood how much of what is on the books is in law v. what President Obama could ease by way of Executive Order.  Nonetheless, there is little doubt, Iran is vexed at its inability to access capital through regular banking channels so long as the American sanctions remain in effect.  What happens next is getting ever more threatening.