European Powers Rejecting US Dollar Dominance to Sanction Iran

The US continues to push the false claim that Iran is in violation of the Joint Comprehensive Plan of Action (JCPOA) despite the fact that European countries and UN agencies have certified that Iran is in full compliance. It seems that the US is insistent upon withdrawing from the agreement and restoring previous extraterritorial sanctions against the country. The end goal is to produce a new agreement which places even greater restrictions upon the country. The economic collapse of the country is the overall goal of US foreign policy towards Iran.

Unfortunately for them, the rest of the first world seems fed up with their constant lies and manipulations concerning Iran. The larger European powers have stated that they intend on keeping up the agreement even if the US pulls out. The problem is that they need a way to protect their firms from the actions of the US. it has already been suggested that “blocking regulations” be established as they have in the past.

Head of the Iranian taskforce at the EU’s external action service, Denis Chaibi, has already said as much: “We are looking at a number of possibilities. It is not complicated to do it legally in that the legal instrument exists, but it doesn’t require a huge internal debate.”

The problem lies in the fact that the US dollar is used for the majority of the world’s trade, as it is the world’s reserve currency. This means that the US is allowed to dictate certain actions and uses of the currency. Now, as before, European countries are arguing that their rights of trade are being violated by this use of the US dollar. This same situation occurred in 1996 when European countries wanted to conduct trade with Cuba despite the economic sanctions against Cuba.

“It could be revived or put back, but only if it is clear that the U.S. is putting back sanctions with extraterritorial sanctions and that they are being applied. It can’t be done protectively,” Chaibi added.

If you’re of the opinion that the US won’t actually do anything to anyone who refuses to follow their orders, you’re wrong. This control over the US dollar allowed them to fine French lender BNP Paribas nearly $9 billion in 2014.

It’s clear that the US is using its dominant position as the world reserve currency to bully and manipulate countries around the world into carrying out their imperialist interests. Since when did the US have the right to dictate what countries can trade with whom? Such actions undermine the domestic economies of others in favour of US foreign policy goals. Such actions would never be tolerated if they were being done to the US.