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The European Union (EU) reimposed sanctions on Iran on September 29 that it had lifted under the 2015 Joint Comprehensive Plan of Action (JCPOA). The EU’s reimposition of sanctions comes after the United Nations Security Council (UNSC) reimposed snapback sanctions on Iran on September 27. The EU froze the Iranian Central Bank and other major Iranian banks’ assets, banned the import of Iranian oil, and banned the export of technologies or materials that Iran could use for uranium enrichment, among other measures. The EU reimposed sanctions on Iranian economic institutions, such as the Khatam ol Anbia Construction Headquarters, that play an outsized role in the Iranian economy. The Khatam ol Anbia Construction Headquarters is controlled by the Islamic Revolutionary Guards Corps (IRGC) and has built power plants, oil vessels, and transportation infrastructure on behalf of the IRGC. The EU also reimposed sanctions on Iranian banks, such as Bank Sepah and Bank Melli, that have supported Iran’s defense industry. Iranian banks reportedly held at least 1.9 billion euros in assets in Europe as of March 2024. The reimposition of EU sanctions on Iran may further isolate Iran from international financial networks and reduce the volume of EU-Iran trade. The EU was Iran’s fifth largest trading partner in 2024. The full impact of the EU sanctions is currently unclear, however. The United States’ imposition of maximum pressure sanctions against Iran in 2018 has already significantly diminished the volume of EU-Iran trade in recent years. The EU’s reimposition of sanctions on September 29 follows the UNSC’s reimposition of snapback sanctions on Iran on September 27, which are similarly designed to politically and economically isolate Iran due to its failure to fulfill its obligations in the JCPOA.
Iranian Supreme Leader Ali Khamenei’s website framed snapback sanctions as “psychological warfare” and called on the regime to expand ties with neighboring countries and pursue a “Look East” policy to mitigate the impact of sanctions. A newspaper run by Khamenei’s website argued on September 28 that Iran must rely on its domestic strength and work with neighbors, “countries in the Global South,” and countries that are part of Iran’s “Look East” policy to mitigate the impact of Western sanctions. Iran’s “Look East” policy seeks to counter US pressure by building ties with countries such as China and Russia. This editorial is consistent with recent statements from Khamenei in May 2025 in which he framed Iran’s participation in multilateral institutions like BRICS and the Shanghai Cooperation Organization as “opportunities” for Iran. Iran joined BRICS in January 2024. Iranian officials have emphasized that Iran’s participation in BRICS provides opportunities for Iran to reduce its reliance on the US dollar and develop alternative financial platforms. Iran has also deepened economic, political, and security ties with Russia in recent years and recently joined the Russian-led Eurasian Economic Union (EAEU). Iran likely seeks to use its membership in multilateral institutions to reduce the impact of Western sanctions and to secure alternative trade routes, energy partners, and financial channels.
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