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Finance Master's essay:
United States imposed economic sanctions against Iran in 1979 because of the speculation that Iran is developing weapons of mass destruction (Global Policy Forum 2008). As a result, of those sanctions, US-based oil companies were not allowed to operate in Iran and blocked other foreign competitors of US from operating there as well. Further in February 2003, Iran revealed its Uranium enrichment program with the claim that it plans to use the technology for peaceful purposes. However, the United States had other fears regarding the program. Therefore, the case was taken to the Security Council. In March 2007, UN Security Council agreed on imposing aggressive sanctions on Iran because of the nuclear program of the country (Thom Shankar 2007).
The consequences of the sanctions are going to be drastic in terms of business and economical impacts. It is obvious that because of the sanctions, a number of US based and other European countries would be bound to be inoperative in Iran. This would reduce the number of clients in terms of petrochemical exports and foreign revenue. Moreover, technological imports and exports would also suffer because of these sanctions. Iran had numerous US based companies operating in the country. These sanctions would result in their departure. Similarly, foreign investments are also going to suffer heavily. Foreign investors would be reluctant to invest in Iran with the threat of US attacks loitering over Iran.
• Managing the sanction effects
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