Do Sanctions Backfire? The Economic Costs of Sanctions Against Iran

Economic sanctions are a widely used instrument of foreign policy, intended to influence government behaviour and achieve political or strategic objectives. However, sanctions can also have unintended economic consequences for the countries imposing them. Lost trade opportunities, financial compliance costs, legal risks and the redirection of commercial relationships towards competing economies raise important questions about their overall effectiveness.

In his article, “Do Sanctions Backfire? The Economic Costs of Sanctions for the Sender Country—The Example of Iran as the Targeted Country,” Christian Alexander Weutscheck examines these issues through the example of sanctions against Iran.

Published in Forum of EthnoGeoPolitics, Volume 13, Numbers 1–2, Winter 2025, pages 353–384, the article explores the economic costs borne by sanctioning countries, with particular attention to the consequences for US and European businesses, international financial institutions and trade relations.

The publication also considers how targeted countries adapt to economic restrictions by redirecting trade towards alternative markets, potentially benefiting competing economies at the expense of businesses in sanctioning countries.

By examining the Iranian case, Weutscheck contributes to a broader discussion about the economic and geopolitical consequences of sanctions. His analysis highlights the importance of assessing not only the pressure imposed on targeted countries but also the costs, trade-offs and unintended consequences experienced by those implementing sanctions.

Do sanctions achieve their intended objectives, or can their economic consequences undermine the interests of the countries imposing them?

Read the full publication to explore the evidence, analysis and implications of this important question.

Read the article: Do Sanctions Backfire? The Economic Costs of Sanctions for the Sender Country — PDF

Reference: Weutscheck, Christian Alexander (2025). “Do Sanctions Backfire? The Economic Costs of Sanctions for the Sender Country—The Example of Iran as the Targeted Country.” Forum of EthnoGeoPolitics, 13(1–2), 353–384.