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September 6, 2025 · Peter Bernscherer · Share on Facebook · Share on Twitter

Sanctions against Iran: Between political rhetoric and effective strategy

Chancellor Christian Stocker announced today that Austria will support all measures against Iran, including sanctions. This announcement follows decades of sanctions policies by Western states against the Islamic Republic, policies that have had limited effectiveness.

The reality of previous sanctions

Iran has been subject to comprehensive international sanctions and embargoes for decades. The results of this policy are sobering: While the ordinary population suffers from inflation, shortages, and a lack of economic prospects, the ruling mullahs and their cronies have barely had to curb their luxurious lifestyles. The sanctions systematically target the wrong people.
A key reason for the failure lies in the consistent circumvention of the embargo measures. Iran possesses significant oil reserves, and where there is oil, there are buyers – despite all official prohibitions. Through complex networks of shell companies, middlemen, and compliant states, Iranian oil continues to flow onto the world market. In addition, the drug trade and a flourishing arms trade ensure stable sources of income for the regime.

Experiences from direct work with refugees
As chairman of the association PCs für alle I have gained insight into the reality of Iranian refugees. We continuously support people who have had to flee the regime, and several of them are now actively involved in our organization. We have assisted dissidents with their asylum applications and listened to their stories – stories of persecution, torture, and desperate escape from a system that brutally suppresses all forms of opposition.
These people tell us firsthand how the current sanctions policy has failed: Their families back home are suffering the economic consequences, while the rulers in Tehran remain unmolested. The Revolutionary Guards, the officials, the mullahs – they all have access to foreign currencies, imported luxury goods, and international financial networks. The sanctions are driving ordinary people into poverty and despair without weakening the regime.

The failure of Western policy
The inconvenient truth is that many Western governments have no real interest in closing the loopholes. Economic interests, geopolitical considerations, and the fear of rising energy prices lead them to settle for symbolic policies while neglecting the truly painful measures.

What would actually work
The necessary steps could be clearly identified:
Consistent financial sanctions: All accounts of individuals proven to collaborate with or benefit from the regime must be frozen worldwide. This requires international coordination and the political will to take action against powerful economic actors.
Criminal prosecution: Representatives of Western companies who pursue business dealings with the Iranian regime despite sanctions should expect criminal consequences. Only the threat of personal liability will reduce the incentive to circumvent the sanctions.
Total diplomatic isolation: No visas for regime loyalists, no state visits, no high-level diplomatic contact. The regime must feel that it is completely isolated internationally as long as it does not fundamentally change its policies.
Transparency and control: Complete monitoring and disclosure of all oil flows, consistent prosecution of sanctions violations and severe penalties for participating companies and states.

Conclusion
Further announcements of sanctions without a substantial change in strategy are mere symbolic politics. If Western governments are serious about putting pressure on the Iranian regime, they must be prepared to bear real costs and make difficult decisions. Otherwise, the sanctions policy will remain what it has been so far: a burden on the Iranian people while simultaneously stabilizing the regime.
The Iranian refugees we work with deserve more than empty promises. They deserve a policy that actually hits their oppressors, not their families.