Minimizing Potential Threats from Iran: Assessing Economic Sanctions
By Matthew Levitt
Yesterday I had the opportunity to testify before the Senate Committee on Banking, Housing and Urban Affairs on the subject of "Minimizing Potential Threats from Iran: Assessing Economic Sanctions and Other Policy Options." Senator Lieberman addressed the committee first, followed by Ambassador Nick Burns, myself, Suzanne Maloney, and Danielle Pletka.
As I noted in my testimony, while some question the wisdom of employing sanctions when the administration is actively seeking to pursue engagement with Iran, and others question the wisdom of employing sanctions that might give the regime a straw man and scapegoat to blame for all of Iran's ills, my own conclusion is just the opposite. This is exactly the time to use financial tools to build leverage for diplomacy.
With the hardline regime so significantly delegitimized -- to the point that both moderates and hardliners have overtly questioned decisions of Supreme Leader Ayatollah Ali Khamenei -- the regime's ability to easily deflect criticism over the state of the Iranian economy or sanctions imposed over Iran's nuclear program has been significantly undermined. Indeed, the regime faces a far greater legitimacy crisis over its handling of the sham election, the Basij crackdown targeting Iranian citizens, the demonization of protestors by senior leaders, and the incarceration of protestors. Given that Iran's nuclear program continues to progress, the one thing that is clear is that we do not have the luxury of time. The question is not whether or not to use sanctions, but what sanctions, targeting which entities, using which tools and authorities, and in what order?
My complete testimony is available here.
