Over the past 18 months, the United States imposed more than 1,000 sanctions on Iran as part of a broad campaign to pressure Tehran into submission. But Iran’s ability to endure the measures has exposed a hard reality for Washington, namely that economic pressure has often failed to deter hostile regimes, which keep finding ways around U.S. restrictions.
The White House this week signed an agreement with Iran aimed at easing economic pressure in exchange for freedom of navigation, including a proposal to lift sanctions permanently if Tehran accepts steps such as dismantling its nuclear program. Iran wants relief badly, because U.S. sanctions have damaged its economy and fueled public discontent, yet it has still managed to earn billions of dollars, especially through oil sales to China. U.S. officials said Trump was ultimately forced to squeeze Iranian ports to curb oil exports, which brought Tehran an estimated $43 billion in 2024. Analysts say Iran still holds leverage, including control of the Strait of Hormuz.
The article says Washington has increasingly relied on sanctions worldwide, with new annual targets jumping from 880 in 2017 to more than 3,000 in 2024, according to the Treasury Department. It describes enforcement as the main weakness, noting that North Korea keeps advancing its nuclear program, Russia continues the war in Ukraine, Nicolás Maduro survived years of sanctions in Venezuela, Myanmar remains under military rule, and Cuba is still standing. Treasury Secretary Scott Bessent said in May, “We are reexamining old and outdated definitions of sanctions,” adding, “Sanctions should not last so long that the effects for which they were imposed create unintended consequences.”
U.S. officials say they have targeted Iranian oil shipments, military procurement networks, crypto access, and shell companies, and a Treasury spokesman said the steps disrupted “tens of billions of dollars” in revenue meant to fund terrorism. Critics, including many hawkish Republicans, argue the new Iran deal gives Tehran too many concessions, including temporary sanctions waivers that would let it sell more oil.
The article argues the central problem is not the sanctions themselves but how they are enforced. Iran, Russia and North Korea use shell companies, intermediaries in China, the UAE and Turkey, illicit trade routes, and cryptocurrency to evade restrictions. The piece cites Iranian businessman Ramin Jalalian, accused of using shell firms in Hong Kong and the UAE to move $30 million, and says North Korea has stolen more than $6 billion in crypto in recent years. It also says China, especially its banks and yuan-based financial channels, has become crucial to helping Iran and Russia bypass sanctions, while Western governments have largely avoided punishing Beijing because of the economic and diplomatic risks.
