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The impact of international economic sanctions on national economies. The Islamic Republic of Iran - a case in point

Abstract This paper explores the impact of economic sanctions on national economies, with specific focus on Iran. It starts by conceptualizing sanctions in the set of economic policies and include them in the framework of economic statecraft, according to literature available. Several hypotheses that attempt to anticipate the form of sanctions are advanced, according to the intensity of geopolitical competition among the states. The analysis uses the case study of the regime of United States’ sanctions against the Islamic Republic of Iran. Tehran and P5+1 powers (the permanent members of the United Nations Security Council and Germany) agreed on a deal regulating the nuclear program of Iran - Joint Comprehensive Plan of Action, meaning that Iran would reduce its nuclear activities drastically in exchange of lifting economic sanctions. In spite of the initial enthusiasm, United States announced in May 2018 the unilateral withdrawal from the deal and reinstating the sanctions regime, spiking new tensions in the relation with Iran. As a result, the paper discusses the context in which Iran tries to pursue economic goals in order to ensure resilience, while the US imposes more pressure. In addition, the study also approaches the dilemma whether sanctions can ultimately generate political answers and at what costs. In this context, it is identifying several alternatives in the Iranian case, together with noting the limits of conceptual refinements in terms of sanctions’ theory.