In a report to Congress regarding sanctions on Iran, it was mentioned that under the Joint Comprehensive Plan of Action (JCPOA) Iran benefits from lots of sanctions relief in return for certain restrictions that are laid out under UN Security Council Resolution 2231.
However, there are numerous flaws in the agreement and President Donald Trump said that he will not renew any more waivers if his conditions for fixing the deal are not met. Trump has already made the decision not to certify Iranian compliance and it leaves the door open to Congress to reimpose sanctions.
If sanctions were reimposed, Iran’s already suffering economy would certainly be harmed further. Previous sanctions seriously affected crude oil exports in 2011 and sanctions relief allowed the economy to stabilize, and even grow, in 2016 and 2017. The re-imposition of sanctions will have a profound negative effect on oil once again, and the economy as a whole.
Foreign energy firms have started to make investments in the energy sector of Iran and large aircraft manufacturers have made big deals for the sale of commercial aircraft. However, despite numerous positive contributions to the Iranian economy, the people of Iran are extremely unhappy with their economic, political and social position resulting in widespread protests at the end of last year.