Trump’s terrorist designation of Iran’s IRGC: The economic impact

Formed within the wake of Iran’s 1979 revolution, the deeply ideological IRGC was designated by Washington as a specially designated global terrorist (SDGT) in addition to sanctioned under the Countering America’s Adversaries Through Sanctions Act (CAATSA) in 2017.

Iran has been listed as a state sponsor of terror by the U.S. since 1984, in addition to in 2007 its foreign operations wing, the Quds Force, was labeled an SDGT.

Many experts agree of which the FTO label won’t significantly deepen the impact of which previous designations have already had. Inflation in addition to unemployment in Iran are skyrocketing, with the sanctions compounding an economy long made stagnant by decades of mismanagement in addition to corruption.

Oil exports, central to Iran’s revenue, have dropped through around 2.5 million barrels a day before Trump’s sanctions to just over 1 million per day currently.

“The symbolism, however, is usually very important here,” Vakil said. “The Trump administration is usually upping the ante in their maximum pressure campaign, because their policy as the idea stands today has yet to see any change in Iranian behavior.”

within the past few years, Iranian-backed proxy activity within the Middle East — including support for Houthi rebels in Yemen in addition to for Bashar Assad’s forces in Syria — has only continued or increased.