"Blocking Overseas Remittances"... Trump Administration Considers Additional Financial Sanctions on Iran

Included in Bank Blacklist... Pressure on Both Remittance and Currency Exchange
"Iran Isolation, Increased Dependence on Illegal Trade"
Also Aimed at Checking Biden, Who Promised to Review Rejoining the Iran Nuclear Deal

U.S. President Donald Trump (left) and Ayatollah Ali Khamenei, Supreme Leader of Iran [Image source=EPA Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] The Donald Trump administration in the United States is reportedly considering new financial sanctions that would blacklist 14 Iranian banks. This move aims to more thoroughly block the routes through which the Iranian government has been able to secure funds despite existing sanctions, and is seen as a strategy to prevent 'rival' Democratic presidential candidate Joe Biden's pledge to reconsider rejoining the Iran nuclear deal (JCPOA - Joint Comprehensive Plan of Action) ahead of the November election.

On the 28th (local time), Bloomberg News cited multiple sources reporting that the Trump administration is preparing additional sanctions to exclude Iran from the global financial system.

According to the report, the sanctions plan includes measures to tighten control over Iran's financial sector based on an executive order signed in January targeting mining, construction, and other industries. If these additional sanctions materialize, 14 Iranian banks that have not previously been subject to U.S. sanctions will be blacklisted, and not only banks but also currency exchange businesses and hawala, an informal money transfer system prevalent in the Middle East, will be affected. This will impose significant restrictions on overseas remittances and other fund transfers.

Bloomberg explained in this regard, "The sanctions will isolate Iran, whose economy has collapsed due to losses in oil sales and other trade, reducing the few legitimate connections Iran has and forcing it to rely more on illegal trade."

However, the plan to impose these sanctions has not yet been presented to President Trump and is currently under review. Initially, there was a predominantly negative response within the administration during the early review stages, citing Iran's economic difficulties due to COVID-19 and existing U.S. sanctions. Strengthening sanctions could conflict with humanitarian aid. But sources said the plan is gaining momentum as hardliners against Iran have begun to take the lead.

Despite U.S. sanctions, Iran has continued trading with countries such as China and the United Arab Emirates (UAE). As a result, the volume of non-oil trade between March and August reached $24.6 billion (approximately 27.7 trillion won). Additionally, Iran's oil trade with Venezuela, a 'anti-American comrade,' has increased U.S. pressure. The U.S. has imposed sanctions to cut off the financial lifeline of the Nicol?s Maduro regime in Venezuela, but Iran has extended a helping hand, maintaining relations.

Iranian oil tanker Forest entered Venezuelan waters on the same day, and additional Iranian tankers Fortune and Faxon are expected to arrive. Local media reported that a total of 825,000 barrels of crude oil will reach Venezuela. Last month, the U.S. seized four vessels heading to Venezuela, confiscating 1.1 million barrels of Iranian gasoline.

Another interpretation of the purpose of these sanctions is that they are a preemptive move to block Biden's pledge. On the 13th, Biden stated in a CNN op-ed that if he wins the presidential election, he would consider rejoining the Iran nuclear deal. He criticized the Trump administration's 'maximum pressure' strategy on Iran as a failure, pointing out that despite various sanctions, Iran has come closer to nuclear weapons than before Trump's administration. Bloomberg analyzed that if new sanctions are imposed in this situation, Biden will face the challenge of proving that Iran is no longer involved in terrorism or missile development.

This content was produced with the assistance of AI translation services.