Nuclear Issues

Over the last two decades, there has been a dramatic increase in the popularity of financial sanctions as an instrument of US foreign policy to address security threats ranging from weapons of mass destruction (WMD) proliferation and terrorism to human rights violations and transnational crime. Washington’s policymakers have prized these tools for their ability to rapidly apply pressure against foreign targets with few perceived repercussions against American business interests. The problem, however, is that Washington is ignoring a growing tension between financial sanctions designed to support economic statecraft (with non-financial goals) and those designed to protect the international financial system. Confusing the two sends mixed signals to adversaries as well as allies and undermines US credibility and commitment to upholding international banking rules and norms. If Washington cannot reconcile these competing processes, it is unlikely that future administrations will enjoy the same foreign policy levers, leaving the United States at a significant disadvantage.

When Iran and the world powers resumed negotiations over Tehran's controversial nuclear program after a seven-year lull, Iran's hardline President Mahmoud Ahmadinejad was approaching the end of his second and last term. During that time, little progress was made. After the election of the moderate Hassan Rouhani to the presidency, the talks resumed decisively. Rouhani and his team were in an ideal position to strike a deal, as they were afforded cross-party support supplying them with political will and political capital.