• Tuesday, Feb 25, 2020
  • Last Update : 11:57 pm

US allows time to wind down deals hit by fresh Iran sanctions

  • Published at 10:23 am January 17th, 2020
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FILE PHOTO: Attendees hold flags from Iran and the United States as Iranian Americans from across California converge in Los Angeles to participate in the California Convention for a Free Iran and to express support for nationwide protests in Iran from Los Angeles, California, U.S., January 11, 2020 Reuters

On Friday, the United States imposed more sanctions on Iran in retaliation for its missile attack on US forces in Iraq last week

The US Treasury Department has said it will allow for a 90-day period to wind down transactions in certain sectors of Iran’s economy hit with fresh US sanctions last week.

In an update to its frequently asked questions (FAQ) on Iran sanctions, the Treasury Department on Thursday said the period, good through April 9, allows transactions in the construction, mining, manufacturing or textiles sectors of Iran’s economy that could be targeted under last week’s action to be wound down without exposure to sanctions.

Entering into new business that falls under the sanctions imposed on Friday, however, would not be considered winding down and could still be sanctionable, the FAQ said.

On Friday, the United States imposed more sanctions on Iran in retaliation for its missile attack on US forces in Iraq last week, and vowed to tighten the economic screws if Tehran continued “terrorist” acts or pursued a nuclear bomb.

The targets of the sanctions included Iran’s manufacturing, mining and textile sectors as well as senior Iranian officials who Washington said were involved in the January 8 attack on military bases housing US troops.

Tensions between Washington and Tehran have spiked since Trump unilaterally withdrew in 2018 from the Iran nuclear deal struck by his predecessor, Barack Obama, and began reimposing sanctions that had been eased under the accord.

Those US sanctions have driven down Iranian crude sales, the Islamic Republic’s main source of revenues, but so far have not brought Iran back to the negotiating table to discuss a new nuclear pact as sought by Trump.