UN Sanctions Return Against Iran After Nuclear Negotiations Fail: Global Economic Implications

Marco Rubio called on UN member states to "immediately" implement sanctions against Iran as comprehensive UN sanctions returned to force late Saturday for the first time in ten years, following unsuccessful nuclear negotiations with Western powers.

These sanctions, reimposed three months after military strikes on Iran by Israel and the United States, prohibit activities related to Tehran's nuclear and ballistic missile programs and are anticipated to broadly impact its already struggling economy.

European and US diplomats emphasized that diplomatic channels remain open despite the sanctions' reinstatement.

US Secretary of State Marco Rubio urged Tehran to "accept direct talks, held in good faith" while calling for UN member states to promptly implement sanctions to "pressure Iran's leaders to do what is right for their nation, and best for the safety of the world."

In a joint statement, foreign ministers from Britain, France, and Germany affirmed their commitment to pursuing "a new diplomatic solution to ensure Iran never gets a nuclear weapon" while urging Tehran to avoid escalation.

Although Iran has permitted UN inspectors to return to its nuclear facilities, President Masoud Pezeshkian stated that the United States had offered only a brief reprieve in exchange for surrendering Iran's entire stockpile of enriched uranium—a proposal he deemed unacceptable.

A last-minute effort by Iran's allies Russia and China to delay the sanctions until April failed to secure sufficient votes in the Security Council on Friday, resulting in the measures taking effect at midnight GMT Sunday.

German Foreign Minister Johann Wadephul explained that Germany, which triggered the sanctions' return alongside Britain and France, had "no choice" as Iran was not fulfilling its obligations, emphasizing: "Iran must never acquire a nuclear weapon."

Russia declared it would not enforce the sanctions, considering them invalid. Russian Foreign Minister Sergei Lavrov criticized the sanctions as exposing "the West's policy of sabotaging the pursuit of constructive solutions in the UN Security Council" and attempting to extract concessions from Tehran through "blackmail and pressure."

Iran has consistently maintained that it is not pursuing nuclear weapons.

The sanctions represent a "snapback" of measures suspended in 2015 when Iran agreed to significant restrictions on its nuclear program under the agreement negotiated during Barack Obama's presidency.

The United States had already imposed extensive sanctions, including efforts to prevent all countries from purchasing Iranian oil, when President Trump withdrew from the agreement during his first term.

Earlier this year, Iran and the United States had engaged in several rounds of Omani-mediated talks before negotiations collapsed in June following military strikes on Iranian nuclear facilities by Israel and subsequently the United States.

Iran recalled its ambassadors from Britain, France, and Germany for consultations on Saturday, according to state television.

"The current economic situation was already very difficult, but it's going to get worse," said an Iranian engineer identified only as Dariush. "The impact of the renewed sanctions is already evident: the exchange rate is increasing, and this is leading to higher prices," the 50-year-old told AFP, lamenting a standard of living that has declined significantly in recent years.

The dollar reached approximately 1.12 million rials on the black market Saturday—a record high according to several currency tracking websites.

An AFP journalist at Tehran's Grand Bazaar observed high activity at jewelry stores as people rushed to purchase gold.

The United States continues to enforce unilateral sanctions against Iran and has pressured third countries to cease Iranian oil purchases, although China has resisted these efforts.

The Brussels-based International Crisis Group indicated that Iran appeared dismissive of the renewed UN sanctions, having already developed coping mechanisms for US sanctions.

However, the think tank noted that reversing the snapback would require Security Council consensus, adding that the sanctions would likely "compound the malaise around an economy already struggling with high inflation, currency woes, and deepening infrastructure problems."

During his address to the UN General Assembly on Friday, Israeli Prime Minister Benjamin Netanyahu urged against delaying the sanctions' reimposition and suggested Israel's readiness for further military action following the twelve days of bombing in June that Iranian authorities report killed more than 1,000 people.