Economic Sanctions as a Foreign Policy Tool: A Case Study of the Iran-West Conflict

Abstract

AbstractThe study focuses on the impact of economic sanctions on Iran’s economy, society, and regional influence, providing insights into the effectiveness of sanctions and their long-term implications. The study employs a mixed-methods approach, including quantitative analysis and content analysis of official speeches, press releases, and news. The sample period covered 50 observations for annual data from 1969 until 2018. The results of this study indicate that economic sanctions have had a significant impact on Iran’s economy, particularly on its oil exports, banking, and manufacturing sectors. The outcome presented a clear and concise picture of the impact of sanctions on Iran’s economic performance. The ARDL model suggests that sanctions significantly impact the macroeconomic instability of the Iranian economy, and the more severe the sanctions imposed on Iran, the more significant the negative impact on the country’s macroeconomic stability. The thematic analysis indicates that sanctions have limited Iran’s development of its nuclear program, but they have not stopped it completely. However, they have failed to reduce Iran’s ability to support militant groups or its regional influence. Furthermore, sanctions have affected the tone of official speeches by Iranian leaders towards the West, making them more cooperative when Iran faces economic hardship and internal unrest. The study recommends that policymakers should consider using multilateral sanctions besides applying diplomatic strategies to minimize the impact on civilians. Finally, policymakers should support moderate candidates in Iranian elections to encourage positive political changes.