US President Donald Trump intends to issue an executive order in the coming days that would authorize measures to impose secondary sanctions against any foreign entity trading conventional arms with Iran and thus effectively shut them out of the US market, Reuters reported, citing four anonymous sources familiar with the development.
The secondary sanctions mechanism implies that foreign entities violating the Iran trade embargo would be barred from trade with the third party, the United States in this case. According to the report by Reuters, “most foreign companies do not wish to risk” of losing access to the US market for trading with “smaller countries such as Iran”. American companies have already been banned from selling arms to Tehran.
On Thursday, US Special Representative for Venezuela and Iran Elliott Abrams hinted at the possible introduction of the executive order, by saying that the Trump administration was planning to impose sanctions against violators of the UN arms embargo against Iran.
The report has not yet been confirmed or refuted by the White House.