Exclusive - Iran and Circumventing the Sanctions

Iranian supreme leader Ali Khamenei. (AFP)
Iranian supreme leader Ali Khamenei. (AFP)
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Exclusive - Iran and Circumventing the Sanctions

Iranian supreme leader Ali Khamenei. (AFP)
Iranian supreme leader Ali Khamenei. (AFP)

The re-imposed American sanctions against Iran demand a closer examination on the extent in which they may lead to the collapse of its ruling regime or eruption of mass protests that may overthrow it.

In this regard, one can make five observations on the current available factors:

1- The losers: Recent experience has demonstrated that those most harmed from sanctions are often regular citizens. Targeted regimes quickly find means to turn the suffering of the people into tools to bolster their internal control and oppress opponents. They will find ways to distract the people with tedious procedures to go about their daily lives, such as securing food baskets and completing transactions that have been made complicated by the sanctions.

The Saddam Hussein regime in Iraq was a prime example of how to exploit sanctions that were imposed after the invasion of Kuwait. On the one hand, he used the sanctions to cow the people into submission and, on the other, waged a media propaganda war that portrayed him as the victim.

Iranian officials have likely garnered enough experience from recent sanctions experiences in 2012 and 2015 to handle the re-imposed US sanctions. The previous experiences had made the lives of Iranian citizens difficult, but presented a golden opportunity for the ruling political class to reap wealth from loopholes in the sanctions.

2- Goals: Those behind the sanctions are seeking to present insurmountable obstacles before the targeted regime to force it to alter its stances and policies and return to the negotiations table. They are also banking on mounting challenges, sparked by the sanctions, that would culminate in popular anger that would eventually overthrow the regime should it remain unyielding in its stances.

Those drafting these strategies, however, often come from countries that enjoy a rich democratic legacy and that actually listen to the people. This is not the case in semi-totalitarian regimes, such as the one in Iran. Iran’s regime is based on revolutionary and religious (Wilayet al-Faqih) teachings, not rules generated from elections and the voice of the people. It is common knowledge that the regime did not hesitate in 2009 to openly forge electoral results when the original ones went against the ruling class.

3- Internal resistance: Iranian supreme leader Ali Khamenei still has many cards up his sleeve to confront the sanctions and he will turn to them when the need arises. Just two days ago, he refused to lift the house arrest against opposition figures Mir Hossein Mousavi and Mehdi Karroubi. He also sought the failure of mediations to appease internal anger against the government. This was interpreted as a sign that Khamenei and his allies have chosen confrontation, rather than appeasement, with local rivals. This was also seen as a message to recent popular protests that the regime will not veer off its current course. The most they can expect is some short-term cures, such as replacing the central bank governor or other officials.

One must take into account that the regime still enjoys popular backing, especially among the poor in the countryside. In 2009, it succeeded in convincing them that the majority of those rejecting the electoral results were “western agents”. The regime has not hidden the fact that it is ready to lead matters towards a wider bloody confrontation if the protests became more organized and yielded a clear leadership.

4- The outside: The international community had rallied against Iraq when the sanctions were imposed against it. In stark contrast, the United States is alone today in waging its campaign against Iran. Despite the massive clout of the American economic and political machine, which will, one way or another, force western companies to accept the sanctions, major players have objected over how the US approach has encroached on their interests. So far, China, Russia and Turkey have refused to comply with the sanctions. There is no doubt that others will follow. They will seek ways to continue cooperation with Iran to achieve financial and political gains on the international scene.

This does not mean that the sanctions will not leave their mark in Iran, because they will. It means that Tehran will find someone to thrown it a lifeline.

5- Ready to pay the price: Much has been written about Iranian pragmatism and how it can withdraw at the very last minute to avoid a crushing military blow. This was demonstrated in how Iranian forces and their allies withdrew 85 kms away from Syria’s Golan Heights out of fear of an imminent Israeli strike.

Iran can use this approach in highlighting potential American losses should tensions between it and Washington escalate towards a military confrontation. Iran may have contained the tensions sparked by President Hassan Rouhani’s threat to shut the Hormuz Strait, but it pushed its forces to stage major military drills near the waterway. This was seen as a message that it was ready for a military confrontation, which would likely not sit well with an American public that has not yet recovered from the shocks of the US invasions of Afghanistan and Iraq.

Given the above, it seems necessary to avoid making conclusive judgments on the re-imposition of sanctions and instead adopt a calmer reading of the developments, despite the backdrop of heated rhetoric.



As the UN Turns 80, Its Crucial Humanitarian Aid Work Faces a Clouded Future

Students in an English class at a primary school run by URWA for Palestinian refugees at the Mar Elias refugee camp in Beirut, Lebanon, Monday, June 2, 2025. (AP Photo/Hassan Ammar)
Students in an English class at a primary school run by URWA for Palestinian refugees at the Mar Elias refugee camp in Beirut, Lebanon, Monday, June 2, 2025. (AP Photo/Hassan Ammar)
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As the UN Turns 80, Its Crucial Humanitarian Aid Work Faces a Clouded Future

Students in an English class at a primary school run by URWA for Palestinian refugees at the Mar Elias refugee camp in Beirut, Lebanon, Monday, June 2, 2025. (AP Photo/Hassan Ammar)
Students in an English class at a primary school run by URWA for Palestinian refugees at the Mar Elias refugee camp in Beirut, Lebanon, Monday, June 2, 2025. (AP Photo/Hassan Ammar)

At a refugee camp in northern Kenya, Aujene Cimanimpaye waits as a hot lunch of lentils and sorghum is ladled out for her and her nine children — all born while she has received United Nations assistance since fleeing her violence-wracked home in Congo in 2007.

“We cannot go back home because people are still being killed,” the 41-year-old said at the Kakuma camp, where the UN World Food Program and UN refugee agency help support more than 300,000 refugees, The Associated Press said.

Her family moved from Nakivale Refugee Settlement in neighboring Uganda three years ago to Kenya, now home to more than a million refugees from dozens of conflict-hit east African countries.

A few kilometers (miles) away at the Kalobeyei Refugee Settlement, fellow Congolese refugee Bahati Musaba, a mother of five, said that since 2016, “UN agencies have supported my children’s education — we get food and water and even medicine,” as well as cash support from WFP to buy food and other basics.

This year, those cash transfers — and many other UN aid activities — have stopped, threatening to upend or jeopardize millions of lives.

As the UN marks its 80th anniversary this month, its humanitarian agencies are facing one of the greatest crises in their history: The biggest funder — the United States — under the Trump administration and other Western donors have slashed international aid spending. Some want to use the money to build up national defense.

Some UN agencies are increasingly pointing fingers at one another as they battle over a shrinking pool of funding, said a diplomat from a top donor country who spoke on condition of anonymity to comment freely about the funding crisis faced by some UN agencies.

Such pressures, humanitarian groups say, diminish the pivotal role of the UN and its partners in efforts to save millions of lives — by providing tents, food and water to people fleeing unrest in places like Myanmar, Sudan, Syria and Venezuela, or helping stamp out smallpox decades ago.

“It’s the most abrupt upheaval of humanitarian work in the UN in my 40 years as a humanitarian worker, by far,” said Jan Egeland, a former UN humanitarian aid chief who now heads the Norwegian Refugee Council. “And it will make the gap between exploding needs and contributions to aid work even bigger.”

‘Brutal’ cuts to humanitarian aid programs UN Secretary-General Antonio Guterres has asked the heads of UN agencies to find ways to cut 20% of their staffs, and his office in New York has floated sweeping ideas about reform that could vastly reshape the way the United Nations doles out aid.

Humanitarian workers often face dangers and go where many others don’t — to slums to collect data on emerging viruses or drought-stricken areas to deliver water.

The UN says 2024 was the deadliest year for humanitarian personnel on record, mainly due to the war in Gaza. In February, it suspended aid operations in the stronghold of Yemen’s Houthi group, who have detained dozens of UN and other aid workers.

Proponents say UN aid operations have helped millions around the world affected by poverty, illness, conflict, hunger and other troubles.

Critics insist many operations have become bloated, replete with bureaucratic perks and a lack of accountability, and are too distant from in-the-field needs. They say postcolonial Western donations have fostered dependency and corruption, which stifles the ability of countries to develop on their own, while often UN-backed aid programs that should be time-specific instead linger for many years with no end in sight.

In the case of the Nobel Peace Prize-winning WFP and the UN’s refugee and migration agencies, the US has represented at least 40% of their total budgets, and Trump administration cuts to roughly $60 billion in US foreign assistance have hit hard. Each UN agency has been cutting thousands of jobs and revising aid spending.

“It's too brutal what has happened,” said Egeland, alluding to cuts that have jolted the global aid community. “However, it has forced us to make priorities ... what I hope is that we will be able to shift more of our resources to the front lines of humanity and have less people sitting in offices talking about the problem.”

With the UN Security Council's divisions over wars in Ukraine and the Middle East hindering its ability to prevent or end conflict in recent years, humanitarian efforts to vaccinate children against polio or shelter and feed refugees have been a bright spot of UN activity. That's dimming now.

Not just funding cuts cloud the future of UN humanitarian work

Aside from the cuts and dangers faced by humanitarian workers, political conflict has at times overshadowed or impeded their work.

UNRWA, the aid agency for Palestinian refugees, has delivered an array of services to millions — food, education, jobs and much more — in Lebanon, Syria and Jordan as well as in the West Bank and Gaza since its founding in 1948.

Israel claims the agency's schools fan antisemitic and anti-Israel sentiment, which the agency denies. Israel says Hamas siphons off UN aid in Gaza to profit from it, while UN officials insist most aid gets delivered directly to the needy.

“UNRWA is like one of the foundations of your home. If you remove it, everything falls apart,” said Issa Haj Hassan, 38, after a checkup at a small clinic at the Mar Elias Palestinian refugee camp in Beirut.

UNRWA covers his diabetes and blood pressure medication, as well as his wife’s heart medicine. The United States, Israel's top ally, has stopped contributing to UNRWA; it once provided a third of its funding. Earlier this year, Israel banned the aid group, which has strived to continue its work nonetheless.

Ibtisam Salem, a single mother of five in her 50s who shares a small one-room apartment in Beirut with relatives who sleep on the floor, said: “If it wasn’t for UNRWA we would die of starvation. ... They helped build my home, and they give me health care. My children went to their schools.”

Especially when it comes to food and hunger, needs worldwide are growing even as funding to address them shrinks.

“This year, we have estimated around 343 million acutely food insecure people,” said Carl Skau, WFP deputy executive director. “It’s a threefold increase if we compare four years ago. And this year, our funding is dropping 40%. So obviously that’s an equation that doesn’t come together easily.”

Billing itself as the world's largest humanitarian organization, WFP has announced plans to cut about a quarter of its 22,000 staff.

The aid landscape is shifting

One question is how the United Nations remains relevant as an aid provider when global cooperation is on the outs, and national self-interest and self-defense are on the upswing.

The United Nations is not alone: Many of its aid partners are feeling the pinch. Groups like GAVI, which tries to ensure fair distribution of vaccines around the world, and the Global Fund, which spends billions each year to help battle HIV, tuberculosis and malaria, have been hit by Trump administration cuts to the US Agency for International Development.

Some private-sector, government-backed groups also are cropping up, including the divisive Gaza Humanitarian Foundation, which has been providing some food to Palestinians. But violence has erupted as crowds try to reach the distribution sites.

The future of UN aid, experts say, will rest where it belongs — with the world body's 193 member countries.

“We need to take that debate back into our countries, into our capitals, because it is there that you either empower the UN to act and succeed — or you paralyze it,” said Achim Steiner, administrator of the UN Development Program.