On August 6, 2018, President Trump signed Executive Order 13846, which terminated the United States' participation in the Joint Comprehensive Plan of Action and reimposed sanctions that had been lifted under the nuclear agreement. The executive order specifically targeted Iran's automotive sector, metals, mining, and manufacturing industries, while simultaneously restricting Iranian access to the U.S. financial system. The action operated through the President's authority under the International Emergency Economic Powers Act, allowing the executive branch to regulate commerce with foreign entities during times of national emergency without requiring congressional approval.
The immediate effects rippled across American business and finance. U.S. companies operating internationally faced significant restrictions on their ability to conduct transactions with Iranian entities, even through foreign subsidiaries. American financial institutions became subject to strict compliance requirements regarding any dealings with Iran-linked parties. Beyond the corporate sector, the sanctions threatened to disrupt global oil markets, with potential consequences for American consumers at gas pumps. Travelers with Iranian family connections confronted new complications in fund transfers and banking relationships, while academic and cultural exchanges faced heightened scrutiny.
This action marked the formal beginning of a sustained escalation in Iran policy that would persist through subsequent administrations. The reimposition of sanctions in 2018 set the foundation for the increasingly aggressive posture reflected in the related actions spanning years forward, including the 2026 troop deployment to enforce maritime blockades, the continuation of national emergency declarations, and Executive Order 14382 addressing Iran threats. Each subsequent action built upon the sanctions architecture established in 2018, creating a cumulative system of economic and military pressure. The $8.6 billion arms deals expedited to Middle East partners in 2026, bypassing standard congressional review, served partly as a counterweight to Iranian regional influence, demonstrating how the initial sanctions decision cascaded into broader military and diplomatic commitments.
No significant court challenges blocked the executive order's implementation, though legal scholars debated the invocation of emergency powers in the absence of imminent military threat. Congress remained divided along partisan lines regarding the wisdom of unilaterally abandoning the multilateral nuclear agreement, limiting legislative action to express disapproval rather than statutory intervention.
Reimposed sanctions on Iran under Executive Order 13846
🌐 Foreign Policy · First Term (2017–2021) · 🤖 AI-categorized
On August 6, 2018, President Trump signed Executive Order 13846, which reimposed certain sanctions on Iran that had been lifted under the Joint Comprehensive Plan of Action (JCPOA). The order reinstated sanctions targeting Iran's automotive sector, metals, mining, and other industries, as well as its access to the U.S. financial system. The direct effect on Americans included increased restrictions on U.S. companies' ability to conduct business with Iran, potential impacts on global oil prices and inflation, and changes to foreign policy obligations.