Two months after the United States, along with Israel, launched a war against Iran, that conflict appears far from a lasting resolution.
But as U.S. power in the world has slowly declined amid the rise of China and an increasingly multipolar world, the country has likewise lost some of its ability to effectively use economics as a weapon. Indeed, as scholars of economic sanctions and statecraft, we believe that the conflict against Iran has made clear the diminishing returns of U.S. economic sanctions.
The limits of sanctions on Iran
Since 1979, relations between Washington and Iran have been antagonistic. U.S. policy has been largely to punish, contain, or isolate Iran, and successive administrations have done so in part through a mix of primary, secondary and targeted financial economic sanctions.
U.S. economic coercion has been applied on Iran for a variety of reasons, including its alleged state sponsorship of terrorism throughout the region and its nuclear program.
