Following Iran’s announcement regarding a successful missile test, and after reports that these missiles can carry a nuclear warhead, the US is considering taking actions and placing new sanctions on Iran. Officials in Tehran claim that any new sanctions will breach the nuclear agreement that was signed by the world powers and Iran.

Obama and Rouhani

Obama and Rouhani Photo Credit: Reuters/Channel 2 News

Despite the nuclear agreement, will Tehran’s economy suffer again? According to official sources in Washington, the Obama administration is just steps away from placing new sanctions on companies in Tehran, Hong Kong and the United Arab Emirates, that are involved with the development of Iranian ballistic missile program. The drastic steps are in light of the continued development of the program and the reported successful test of an Iranian ballistic missile.

The sanctions are expected to be carried out by the US Department of Treasury and, if placed on Iran, they will be the first US step against the Islamic Republic since the world powers signed the nuclear agreement. The Iranians haven’t been silent about this matter and sent warnings to the Americans that if sanctions will be placed on the Islamic Republic, the nuclear agreement will be breached.

American officials clarified that according to the agreement, sanctions are allowed to be placed on companies that are involved with the ballistic missile program, terror or human rights violations.

“We are considering various aspects related to additional designations, as well as evolving diplomatic work that is consistent with our national security interests,” said a high ranking official in the Obama administration.

UN officials addressed the option of placing sanctions on Iran and said that despite it being possible, Russia and China will most likely reject them. Iran has continued to claim that the missiles that were developed and tested aren’t capable of carrying a nuclear warhead and therefore the US has no justification for the sanctions.

If the sanctions will indeed be placed on Iran, no US or any other world power official will be allowed to continue business relations with the companies. Also, US banks will have to freeze all the assets held by these companies and their employees in the US.