Please ensure Javascript is enabled for purposes of website accessibility
US Sanctions to Hit Iran's Metals Industry, a Major Employer
gvw_ap_news
By Associated Press
Published 6 years ago on
May 10, 2019

Share

TEHRAN, Iran — U.S. sanctions have targeted Iran’s government, its paramilitary forces and the oil exports that fund them. Now they are hitting its vital steel, aluminum, copper and iron industries.

“I don’t think (the U.S.) can, or wants to fight Iran … because wars are no longer a thing. Nowadays, wars are economic wars. Look at these sanctions. It’s so easy.” — Ahmad Hashemi, who sells steel products like sheet metal and beams in southern Tehran

The new sanctions, imposed as Tehran announced its partial withdrawal from its 2015 nuclear deal with world powers, seem to be moving ever closer to directly affecting the country’s 80 million people, rather than the leadership. The metals industry is a major employer and a rare bright spot for Iran’s anemic economy.

Many Iranians already feel the vise squeezing ever tighter around the country, which has caused its currency, the rial, to depreciate rapidly and push the price of nearly everything beyond the reach of ordinary consumers.

“I don’t think (the U.S.) can, or wants to fight Iran … because wars are no longer a thing,” said Ahmad Hashemi, who sells steel products like sheet metal and beams in southern Tehran. “Nowadays, wars are economic wars. Look at these sanctions. It’s so easy.”

U.S. President Donald Trump issued his executive order Wednesday announcing the sanctions. That came just after Iran threatened to enrich its uranium stockpile closer to weapons-grade levels in 60 days if European leaders fail to negotiate new terms of the nuclear deal to protect Iran’s ability to trade on the global market.

The Trump Administration Contends That the Deal

The new sanctions are part of Trump’s maximalist policy targeting Iran after he pulled the U.S. out of the nuclear deal a year ago. The United States, Germany, Britain, France, Russia, China and the European Union signed the deal in 2015, lifting international sanctions on Iran in exchange for Tehran limiting its nuclear program.

But the Trump administration contends that the deal, reached under former President Barack Obama, should have included limits on Iran’s ballistic missile program and curbed its regional influence. Supporters of the deal describe it as an important measure freezing Iran’s nuclear program while offering a step toward further negotiations.

“We have imposed the toughest sanctions ever on this Iranian regime,” said Brian Hook, a U.S. envoy for Iran. “We have designated nearly 1,000 individuals and entities since the beginning of the administration. We have taken Iran’s oil exports to historic lows. And we have stopped issuing oil waivers to those who import Iranian oil, which means zeroing out the purchases of Iranian crude.”

Iran’s domestic metal industry includes dozen of steel mills, mainly government-owned, that employ about 50,000 workers. Of the 25 million tons of steel produced, Iran exports over 30%, earning nearly $4 billion yearly. Its top markets have been Thailand, the United Arab Emirates, Iraq and Indonesia, according to the U.S. Commerce Department.

About 3,000 factories and workshops produce goods for Iran’s domestic market ranging from kitchen utensils and building frames to offshore oil rigs and military vehicles. It also feeds into Iran’s domestic car manufacturing plants.

 

Some Demonstrations Have Already Hit Steel Mills

Metal-related industries employ about 10 percent of the country’s 22 million workers, a report by Iran’s parliament said. How the sanctions will affect Iran’s miners remains unclear. About 6 percent of its 8,840 mines produce raw materials such as iron, copper and aluminum.

“Creating the conditions for mass unemployment — especially among the blue collar workers employed by state-owned enterprises who form the backbone of Iran’s economy — is the likely aim of the Trump administration’s latest round of sanctions.” — Esfandyar Batmanghelidj,  founder of Iranian economic website Bourse & Bazaar

Tehran-based economic analyst Gholamreza Kiamenhr said he believed that the sanctions on the metals industry “possibly affects employment and production lines,” although it won’t be as crippling as those on Iran’s oil industry.

Esfandyar Batmanghelidj, the founder of the Iranian economic website Bourse & Bazaar, said the measures appear aimed at stoking further unrest in the country. At the end of 2017 through the start of 2018, economic protests swept across 75 cities and towns, lasting for days and resulting in the deaths of dozens of people and the arrest of hundreds more.

Some demonstrations have already hit steel mills. In December, authorities detained an unspecified number of steelworkers after five weeks of protests over delays in paying salaries.

“Creating the conditions for mass unemployment — especially among the blue collar workers employed by state-owned enterprises who form the backbone of Iran’s economy — is the likely aim of the Trump administration’s latest round of sanctions,” Batmanghelidj wrote.

It’s also weakening the position of Iranian President Hassan Rouhani, the relatively moderate cleric whose signature accomplishment was the nuclear deal.

Many Believe the Situation Will Only Get Worse as Time Goes On

“The president should bravely admit the obvious defeat of his recent six years of strategies and resign,” said Abdolreza Davari, a close adviser to former President Mahmoud Ahmadinejad, a hard-liner. “This will quickly prepare the ground for taking office by a new government that is capable to control the country in this current critical situation.”

After the U.S. withdrew from the nuclear accord, it restored the crippling sanctions, exacerbating Iran’s economic crisis. The rial, which traded at 32,000 to $1 at the time of the accord, traded Thursday at 156,500, creeping further downward.

“Even before the latest sanctions, the previous ones already impacted our daily lives and have been effective,” said a 52-year-old engineer who gave his name as Afshin. “If we say they had no effect we are deceiving ourselves. I can say that my family has gone from a middle-class family to a lower-class family. The situation is much worse than before.”

Many believe the situation will only get worse as time goes on. Many of those who are young and unmarried discuss fleeing the country with friends. Those who are older simply shrug and watch as prices of everything from meat to medicines climb out of reach.

“We made a mistake when we shut down our nuclear program. As an Iranian, I say that was a mistake. If we start again and they impose sanctions, then we can at least say we are under sanctions for the nuclear program,” said Hashemi, the steel products merchant. “Now we are wondering why we are under sanctions. We shut down the nuclear program, so why we are being punished with sanctions?”

DON'T MISS

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

Republicans’ Trust in Media Increases Following Trump’s Return to White House

DON'T MISS

Jeanine Pirro to Be Interim US Attorney for DC, Trump Says

DON'T MISS

Fresno Police Catch Fleeing Gang Member Who Tossed Gun Over Fence

DON'T MISS

Suit Challenges New Rules on Children in Federal Custody Who Crossed Into US

DON'T MISS

Fresno Mayor Dyer Bullish on Growth, Calls on Newsom for $200 Million

DON'T MISS

Rejoicing Peruvians See Pope Leo XIV as One of Their Own After His Many Years in Peru

DON'T MISS

FEMA’s Acting Administrator Is Replaced a Day After Congressional Testimony

DON'T MISS

North Korea’s Kim Jong Un Leads Missile Test, Stresses Nuclear Force Readiness, KCNA Says

DON'T MISS

Shohei Ohtani Could Have Landed 15-Year Deal, Agent Says, but He Didn’t Want to Risk Skills Decline

DON'T MISS

White House Overhaul of Troubled US Air Traffic Control System Will Cost ‘Lots of Billions’

UP NEXT

Rejoicing Peruvians See Pope Leo XIV as One of Their Own After His Many Years in Peru

UP NEXT

North Korea’s Kim Jong Un Leads Missile Test, Stresses Nuclear Force Readiness, KCNA Says

UP NEXT

Shohei Ohtani Could Have Landed 15-Year Deal, Agent Says, but He Didn’t Want to Risk Skills Decline

UP NEXT

Joe Biden Blames Kamala Harris’ Loss on Sexism and Racism and Rejects Concerns About His Age

UP NEXT

Trump Says China Tariffs Will Come Down From 145%

UP NEXT

Reaction to Cardinal Prevost Becoming Pope Leo XIV, First US Pontiff

UP NEXT

Before Tariff Price Increases, Mark Cuban Suggests Stocking Up on These Items

UP NEXT

He Was Killed in a Road Rage Shooting. AI Allowed Him to Deliver His Own Victim Impact Statement

UP NEXT

US Cardinal Prevost Elected Pope Leo XIV, First American Pontiff

UP NEXT

More Older Americans Worry Social Security Won’t Be There for Them

Suit Challenges New Rules on Children in Federal Custody Who Crossed Into US

13 hours ago

Fresno Mayor Dyer Bullish on Growth, Calls on Newsom for $200 Million

13 hours ago

Rejoicing Peruvians See Pope Leo XIV as One of Their Own After His Many Years in Peru

13 hours ago

FEMA’s Acting Administrator Is Replaced a Day After Congressional Testimony

13 hours ago

North Korea’s Kim Jong Un Leads Missile Test, Stresses Nuclear Force Readiness, KCNA Says

14 hours ago

Shohei Ohtani Could Have Landed 15-Year Deal, Agent Says, but He Didn’t Want to Risk Skills Decline

14 hours ago

White House Overhaul of Troubled US Air Traffic Control System Will Cost ‘Lots of Billions’

14 hours ago

US Military to Start Kicking out Transgender Troops Next Month, Memo Says

14 hours ago

Los Angeles Coliseum and SoFi Stadium to Share Opening and Closing Ceremonies for 2028 Olympics

14 hours ago

Jennifer Aniston’s Alleged Stalker Appears in Court Shirtless and a Judge Orders a Mental Evaluation

14 hours ago

Republicans’ Trust in Media Increases Following Trump’s Return to White House

Americans’ trust in news organizations and social media has increased since last year, with Republicans driving this shift following T...

13 hours ago

https://www.communitymedical.org/thecause?utm_source=Misfit+Digital&utm_medium=GVWire+Banner+Ads&utm_campaign=Branding+2025&utm_content=thecause
13 hours ago

Republicans’ Trust in Media Increases Following Trump’s Return to White House

Fox News Channel host Jeanine Pirro and other members of the news media work outside the Manhattan Criminal Court building during the 2nd day of jury deliberations in former U.S. President Donald Trump’s criminal trial over charges that he falsified business records to conceal money paid to silence porn star Stormy Daniels in 2016, in New York City, U.S. May 30, 2024. REUTERS/Mike Segar
13 hours ago

Jeanine Pirro to Be Interim US Attorney for DC, Trump Says

Fresno police arrested a known gang member who ran from officers and tossed a gun over a fence in southeast Fresno. (Fresno PD)
13 hours ago

Fresno Police Catch Fleeing Gang Member Who Tossed Gun Over Fence

13 hours ago

Suit Challenges New Rules on Children in Federal Custody Who Crossed Into US

13 hours ago

Fresno Mayor Dyer Bullish on Growth, Calls on Newsom for $200 Million

13 hours ago

Rejoicing Peruvians See Pope Leo XIV as One of Their Own After His Many Years in Peru

13 hours ago

FEMA’s Acting Administrator Is Replaced a Day After Congressional Testimony

A handout photo shows missiles being launched, in North Korea, May 8, 2025. KCNA via REUTERS
14 hours ago

North Korea’s Kim Jong Un Leads Missile Test, Stresses Nuclear Force Readiness, KCNA Says

Help continue the work that gets you the news that matters most.

Search

Send this to a friend