Iran Sanctions or Blockade? Philosophy and Consequences The Effect of Recent U.S. Sanctions on Iran’s Real Economic Sector

The USA has increasingly^[1] employed economic sanctions as a tool to pursue its foreign policy objectives. Sanctions have diminished the investment drive behind Iran's economic development, hampering the country's plans for long-term growth within the framework of Iran's 2025 vision which kicked off in 2005.

There are mixed opinions on the impact of these sanctions on Iran's economy however, there are some who describe them as fruitless.

This study initially investigates the nature and philosophy of sanctions with a glance at the impact of recent US sanctions on Iran's actual economy, with an emphasis on the country's industrial sector from 2009 to 2019. The relationships between variables were investigated using EViews9.

The research findings show:

1) The commonly used term sanctions needs to be redefined and it is also incorrect to use the term "unilateral sanctions".

2) The new sanctions have been "effective" on different scales on price fluctuations in three sectors examined namely, housing, transportation and health.