As of today, 700 people, entities and companies are on Washington’s black list. The Islamic Republic could be cut off from the global financial system. Ordinary Iranians have taken to the streets chanting "Death to America". The economic crisis underlies a domestic power struggle putting. President Rouhani is now in the crosshairs of reformists and hard-liners.

Tehran (AsiaNews) – Striking a defiant tone, Iranian President Hassan Rouhani said that Iran will continue to sell oil after the United States re-imposed complete sanctions against the Islamic Republic in order to stop its oil exports.

"We will proudly break the sanctions," he said. According to Iran, the latter are illegal and unfair, contrary to international law.

As of today, more than 700 individuals, entities, vessels and aircraft are now on the sanctions list, including major banks, oil exporters and shipping companies.

In addition, the Brussels-based Swift network for making international payments is expected to cut off links with targeted Iranian institutions, isolating Iran from the international financial system.

In May, US President Donald Trump decided to withdraw from the Joint Comprehensive Plan of Action (JCPOA) signed by his predecessor, Barack Obama. The US leader followed this with the toughest sanctions in history against Iran.

The decision had an immediate negative impact on the Iranian economy – noted by studies of  the International Monetary Fund (IMF) – causing a serious drop in oil exports, the main goal of the second part of the sanctions.

The Trump administration though did grant exemptions to eight countries to continue importing Iranian oil, without naming them. However, they are reported to include US allies Italy, India, Japan and South Korea, as well as with Turkey, China and India.

Recently, the European Union envisaged using an old law to circumvent the sanctions but there are serious doubts about its effectiveness.

In Iran itself, thousands of Iranians chanting "Death to America" rallied on Sunday, rejecting calls for talks.

The US sanctions are timed to coincide with the siege of the US embassy on 4 November 1979, which led to the break in diplomatic relations.

Yesterday's demonstrations also provided an opportunity to protest against the new sanctions.

Iranian state media said millions turned out in towns and cities, swearing allegiance to the Supreme Leader Ayatollah Ali Khamenei. The figure could not be independently verified.

According to analysts and experts, this second set of sanctions coming three months after the first is meant to change Iran’s behaviour, especially in terms of its nuclear and missile programmes.

Yet, the first victims of these punitive measures are ordinary Iranians, who are now having to cope with hyper-inflation, the devaluation of the national currency, and rising unemployment.

Iranians of all walks of life are feeling increasingly victims of an injustice caused by a clash between governments; not only among the poor, but also in the middle class.

This had recently sparked unsuccessful anti-government protests, which were squashed by a regime crackdown.

Now for most Iranians, the priority is not human rights or civil liberties, but the stagnant economy and sluggish development after years of growth following the lifting of sanctions under the Obama administration.

President Rouhani is also paying a price. In spite of his attempts to reassure the population and present a new cabinet team, he seems to have lost credibility as well as the confidence of the population.

In fact, for reformists, he has failed to change the country; but for the radicals and hard-line conservatives – who are benefiting from the present situation – he struck a deal with the "great Satan" that failed.

• iran
• united states
• sanctions
• poverty
• economy
• nuclear
• oil