Snapback sanctions against Iran by E3 activated

Snapback Sanctions against Iran
⏳ 30-Day Countdown

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www.oilfutures.co.uk

Three European nations, the United Kingdom, Germany, and France—known as the E3—have initiated the long-awaited snapback mechanism against Iran. This mechanism, a key component of the 2015 Iranian nuclear deal, officially known as the Joint Comprehensive Plan of Action (JCPOA), allows any of its signatories to automatically reinstate all United Nations (UN) sanctions against Iran if it's found to be in "significant non-performance" of its commitments.

The snapback process is designed to be veto-proof, giving any signatory—except for Germany, which does not have veto power at the UN—strong leverage. The E3 nations officially informed the UN Security Council of their decision on August 28, 2025, citing Iran's nuclear escalation, including accumulating a large stockpile of enriched uranium and restricting inspections by the International Atomic Energy Agency (IAEA).

After a signatory informs the UN Security Council, there is a 30-day countdown before the punitive sanctions against Iran are imposed. During this period, Iran has a final chance to demonstrate its compliance with the JCPOA. If it fails, all UN resolutions from 2006 to 2019 will be reinstated.

The E3's decision was welcomed by the United States, which had previously abandoned the JCPOA in 2018 under the Trump administration. At the time, the U.S. accused Iran of having a hidden agenda to produce a nuclear weapon, a claim Iran protested by citing a fatwa from Supreme Leader Ayatollah Khamenei that banned the production of nuclear bombs. The other JCPOA signatories had disagreed with the U.S. withdrawal in 2018 and did not follow suit by threatening to trigger the snapback mechanism. Now, Russia and China have expressed dissatisfaction with the current snapback activation, as it deprives them of their veto power at the UN Security Council.

For Iran, the timing of these new sanctions couldn't be worse. Its economy is already in recession, marked by a freefalling currency, a stagnant stock market, high inflation, and shrinking business activity.

Despite the economic pressure, Iran has been threatening unspecified "consequences" for Europe. Some Iranian hardliners have also warned that if Iran can't sell its oil, other regional producers won't be able to either. This is seen as a veiled threat to block the Strait of Hormuz, a narrow but vital waterway in the Persian Gulf through which nearly one-fifth of the world's crude oil flows. Although Iran's navy is no match for the more prominent naval forces in the region, it could still disrupt the flow of oil by laying mines. Such a move, however, would likely cause problems with a key ally, China, which relies on the strait as a major transport hub.

Overall, the situation remains highly volatile. As the 30-day countdown to the snapback sanctions concludes, the tension in the region is expected to increase.

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