Photo: Business Insider
With all of the headline coverage of a possible attack on Iran, and the potentially disastrous consequences, people are underestimating the US commitment to sanctions. So says Eurasia Group President Ian Bremmer in his latest piece for the FT.America does not want to see a war, nor does it want to see Iran with a nuclear weapon.
As a result, it has been ratcheting up its sanctions, and is heavily invested in seeing them succeed.
“….it is clear that financial tools, not air strikes, are the market-moving risk to watch. Many companies and financial institutions understand this. Standard Chartered will not be the last company to face heavy fines and new restrictions on its ability to operate in the US but European, Japanese and some other companies have seemingly done a better job than Standard Chartered in taking this risk seriously. Sanctions are a lot less eye-catching than air strikes or a blockade but it is now clearer than ever that they are the primary market risk to watch.”
Sanctions don’t work unless they’re enforced. We’re seeing that that enforcement can and will extend to well known corporations that have dealings with Iran.
The size of the transactions routed by Standard Chartered makes clear the incentive to aid Iran. It remains to be seen whether the punishment will be sufficient to dissuade others.
Read the whole piece at the FT