Hard on the heels of U.S. withdrawal from the Iran nuclear accord, Secretary of State Mike Pompeo on Monday laid out a new strategy to contain Iran’s nuclear ambitions and regional imperialism. The U.S. plans to impose severe financial and economic pressure while offering Iran better diplomatic and commercial relations if it changes its threatening course.
In 2015 Barack Obama and Secretary of State John Kerry made a $100 billion bet that their Joint Comprehensive Plan of Action (JCPOA) would end Iran’s nuclear program while transforming the Islamic Republic into a responsible member of the world community. The wager didn’t pay.
While delaying its nuclear dream a few years, Iran has spent the windfall from sanctions relief financing proxy wars through the Islamic Revolutionary Guard Corps, Hezbollah, Hamas and the Houthis in Yemen. The Iranian economy languished, and Iranians suffered. “ Qasem Soleimani has been playing with house money that has become blood money,” Mr. Pompeo said about Iran’s Qods Force general.
The new U.S. strategy promises to restore a hard economic vise that will squeeze Iran’s funds for adventurism. The sanctions regime in place before the nuclear deal already is returning, Mr. Pompeo said, and new penalties will be “the strongest sanctions in history.” Iran will have to choose: “Either fight to keep its economy off life support at home or keep squandering precious wealth on fights abroad. It will not have the resources to do both.”
Critics insist the U.S. can’t replicate the previous sanctions because the Europeans, Russians and Chinese aren’t supportive. The European Union in particular is exploring ways to circumvent U.S. sanctions, but that is harder than it sounds. As Mark Dubowitz and Richard Goldberg note nearby, the Iran economy is under pressure and its currency is reeling.