Iran's economy is expected to deteriorate even further in the wake of the United Nations Security Council's reimposition of sanctions on Iran over its nuclear program, following failed diplomatic efforts during last week’s General Assembly in New York, experts told The New York Times on Sunday.
The decision, made Saturday, comes amid growing international concern over Tehran’s uranium enrichment activities and its refusal to cooperate with nuclear inspectors.
The renewed sanctions freeze assets, impose travel bans on individuals and entities, and authorize member states to inspect Iranian cargo by air or sea. They also prohibit Iran from enriching uranium, launching nuclear-capable ballistic missiles, and transferring missile-related technology. An arms embargo has also been reinstated.
US Secretary of State Marco Rubio confirmed the measures went into effect at 8 p.m. local time.
“The decision to restore these restrictions sends a clear message: The world will not acquiesce to threats and half measures, and Tehran will be held to account,” Rubio said.
Iranian President Masoud Pezeshkian condemned the move, calling the sanctions “unjust and illegal.”
“They want to topple us. If you were in our place, what would you do?” he told reporters in New York on Friday.
Iran has not yet issued an official response. Pezeshkian said a decision would be made following consultations in Tehran. On Saturday, the Iranian Foreign Ministry recalled its ambassadors from France, the United Kingdom, and Germany for discussions.
The measures were reimposed under the snapback mechanism of the 2015 nuclear deal, which allows for the automatic return of UN sanctions if Iran is deemed in violation of the agreement. Although the provision was due to expire in October 2025, France, the UK, and Germany triggered it early in August, setting a September 28 deadline.
European powers accused Iran of enriching uranium to 60%, which is well above the 3.5% limit established by the accord, and stockpiling 400 kilograms of highly enriched material. They also cited Iran’s move to block access to international nuclear inspectors after airstrikes in June.
Pezeshkian reiterated that Iran’s nuclear program is intended for peaceful purposes, arguing that enrichment activities accelerated only after the United States unilaterally withdrew from the deal in 2018 and reinstated its own sanctions.
Tehran claims it offered to allow inspectors access to its nuclear sites and engage with European parties, but rejected a US condition that would have required Iran to relinquish its uranium stockpile in exchange for a temporary postponement of the snapback.
Russia and China, both permanent members of the Security Council, opposed the reimposition and proposed a six-month delay. Their proposal was rejected in a 9 to 6 vote. Both countries have dismissed the legitimacy of the snapback process and are expected to continue their trade relationships with Iran.
Economy under further strain
The renewed sanctions add pressure to an already faltering Iranian economy. The country is still reeling from June’s Operation Rising Lion and is facing critical shortages of electricity and water. On Saturday, the Iranian rial lost 4% on the black market, trading at 1,126,000 to the dollar. Inflation remains above 40%.
While the UN measures may not carry the same financial weight as existing US sanctions, they “compound the already significant strain on Iran’s economy,” Naysan Rafati, senior Iran analyst at the International Crisis Group, told The New York Times.
Industry leaders echoed the concern. Mehdi Bostanchi, head of Iran’s Council of Industries, warned that small and medium-sized enterprises could face falling demand and additional difficulties importing goods due to extended restrictions on banking, insurance, and shipping.
Iran has not withdrawn from any international nuclear treaties. Pezeshkian dismissed calls from hardline elements to exit the Nuclear Nonproliferation Treaty, saying such a move is not under consideration.