Iran’s clerical rulers face existential crisis as UN sanctions return - Reuters
Iran’s clerical leaders are facing one of their deepest crises since the 1979 Islamic Revolution, caught between a worsening economic squeeze and renewed international pressure after the United Nations reimposed sanctions, Reuters reported.
Sanctions were restored on Saturday under the snapback mechanism after talks between Tehran and European powers collapsed. Iranian officials told Reuters the measures will intensify isolation and fuel public anger, though concessions to the West could fracture the ruling elite.
“The clerical establishment is trapped between a rock and a hard place. The existence of the Islamic Republic is in peril,” one official said.
The revived sanctions -- including limits on oil, banking, finance, uranium enrichment, and a global arms embargo -- come amid fears of renewed Israeli strikes.
“The chances of war breaking out are significant,” former lawmaker Gholamali Jafarzade Imenabadi told Iranian media.
Iranian leaders say the sanctions will push them to harden their nuclear stance, but divisions have emerged inside the establishment. Some urge escalation, while others see “no war, no deal, and continued talks” as the least risky path, Reuters said.
Public frustration is rising under inflation estimated at 40–50%, with food, housing and utilities costs surging. “We already struggle to make ends meet. More sanctions mean more economic pressure. How are we going to survive?” said Shima, a 36-year-old teacher in Tehran.
Iran has relied on oil sales to China to avoid collapse, but officials warn the revived UN measures could threaten even that lifeline.
France, Germany and the United Kingdom said on Sunday that the reimposition of United Nations sanctions on Iran was unavoidable after what they described as Tehran’s persistent breaches of the 2015 nuclear deal.
In a joint statement on Sunday, the so-called E3 foreign ministers said the snapback mechanism under UN Security Council Resolution 2231 had been triggered on August 28 and completed late on September 27, restoring six previous resolutions imposing international sanctions.
“We welcome the re-instatement since 20:00 EDT on 27 September of Resolutions 1696, 1737, 1747, 1803, 1835, and 1929 after completion of the snapback process,” the ministers said. “We urge Iran and all states to abide fully by these resolutions.”
The measures include restrictions on arms transfers, missile development and proliferation-related activities. They had been lifted in 2015 when Iran agreed to curb its nuclear program under the Joint Comprehensive Plan of Action (JCPOA).
The E3 said Iran had “exceeded all limits on its nuclear program” since 2019 and was now holding enriched uranium “48 times the JCPOA limit.”
According to a September 4 report by the International Atomic Energy Agency, Iran possesses 10 “significant quantities” of highly enriched uranium (HEU) outside of monitoring, an amount that “cannot exclude the possibility of manufacturing a nuclear explosive device.”
“Iran has no credible civilian justification whatsoever for its HEU stockpile,” the statement said. “No other country without a nuclear weapons program enriches uranium to such levels and at this scale.”
The ministers said they had made repeated efforts to avoid snapback, including invoking the JCPOA dispute resolution mechanism in 2020 and participating in talks aimed at restoring the deal in 2020 and 2021.
In July 2025, the E3 offered Iran a one-time extension of snapback if Tehran agreed to resume unconditional talks with Washington, return to compliance with its safeguards obligations and address its HEU stockpile. “Iran did not engage seriously with this offer,” they said.
On September 19, the UNSecurity Council rejected a resolution to maintain sanctions relief for Iran. “The outcome of the vote was an unambiguous no,” the ministers said, adding that the decision “sent a clear signal that all states must abide by their international commitments.”
The statement stressed that “the reimposition of UN sanctions is not the end of diplomacy.” It urged Tehran “to refrain from any escalatory action and to return to compliance with its legally binding safeguards obligations.”
France, Germany and the UK said they remained committed to working with all parties “towards a new diplomatic solution to ensure Iran never gets a nuclear weapon.”
Iran’s foreign ministry on Sunday rejected US and European efforts to restore UN sanctions, saying that “no obligation” rests on Tehran or other member states to abide by resolutions that were terminated in 2015.
In a lengthy statement carried by state media, the ministry denounced Britain, France, Germany and the United States for “abusing” the dispute-resolution process in the 2015 nuclear deal and UN Security Council Resolution 2231 to bring back restrictions.
“The Islamic Republic of Iran rejects the claim of the three European countries and the United States regarding the return of previous resolutions that ended under Resolution 2231 in 2015, and emphasizes that no obligation is created for UN member states, including Iran,” the ministry said.
It added: “Any attempt to revive terminated resolutions is legally baseless, morally unacceptable and logically flawed.”
The foreign ministry said Resolution 2231, which endorsed the nuclear deal, must expire on October 18, 2025 as scheduled. “Resolution 2231 of the Security Council and its restrictions on Iran’s peaceful nuclear program should be deemed terminated on that date,” it said.
The ministry accused the Europeans of “gross non-performance” of their obligations under the 2015 deal while siding with the United States in military strikes against Iranian nuclear sites in June.
“By explicitly or implicitly supporting the military aggression of the Zionist regime and the United States against Iran’s peaceful nuclear facilities … they flagrantly violated international law, the non-proliferation regime, and specifically Resolution 2231,” it said.
Iran also said European powers acted “in bad faith” by pushing a draft resolution through the Security Council despite opposition from other signatories, including Russia, China and Iran. “It is regrettable that despite the clear positions of other members of the JCPOA, the Council president illegally put the draft to a vote,” the statement said.
“Iran will vigorously defend the rights and interests of the Iranian nation, and any move to harm them will be met with an appropriate and decisive response,” the ministry warned.
Iranian Foreign Minister Abbas Araghchi
Araghchi’s letter to the UN
Foreign Minister Abbas Araghchi separately wrote to UN Secretary-General Antonio Guterres and Security Council President Sang Jin Kim, saying the alleged return of sanctions “null and void.”
Echoing same arguments in the statement, Araghchi said, “We urge you to prevent any attempt to revive the sanctions mechanisms, including the Sanctions Committee and the Panel of Experts. None of the UN’s resources should be dedicated to supporting such illegal acts.”
Araghchi also argued that the European move was procedurally flawed. “The notification of the three European countries to trigger the so-called snapback mechanism is legally and procedurally defective, and thus null and void,” he wrote.
“They themselves defaulted on their commitments, misused the JCPOA dispute settlement process, and even justified military attacks against safeguarded nuclear facilities in Iran.”
In his letter, Araghchi also recalled past divisions in the Security Council, saying that in 2020 a similar US effort failed.
“This situation mirrors that of October 2020, when the United States illegally sought to trigger the so-called snapback mechanism. At that time, the president of the Security Council said in a letter dated August 25, 2020, that the Council was not in a position to act on the matter.”
“Subsequently, in a letter dated September 21, 2020, thirteen members confirmed that the US communication could not be considered a valid notification to initiate the snapback process under paragraph 11 of Resolution 2231, and therefore no automatic procedure was activated. In October 2020, the Secretary-General and the Secretariat likewise declined to implement or reimpose sanctions, citing divisions and lack of consensus within the Council.”
“The September 26, 2025 vote once again showed that the Council is divided and lacks consensus on restoring sanctions,” he said.
Araghchi stressed that restrictions must end permanently on October 18, 2025. “All nuclear-related restrictions under Resolution 2231 will end on that date. Iran will not recognize any effort to extend, revive or enforce them after that,” he said.
Elsewhere in the Sunday statement, the foreign ministry insisted that Iran had shown “repeated commitment to dialogue and diplomacy” since 2015, implementing the deal until a year after Washington’s withdrawal in 2018.
“Iran presented numerous proposals for the restoration of commitments or a new negotiated understanding, all of which failed due to the lack of seriousness and good faith of the Europeans and the US,” it said.
It also highlighted what it called “criminal aggression” by Israel and the US against its nuclear facilities in June. “These attacks … killed and wounded many Iranian citizens and destroyed nuclear facilities and vital infrastructure. Iran will use all available tools to prosecute and punish the perpetrators and demand compensation,” the ministry said.
Tehran concluded that Western states had chosen “confrontation and crisis-making” over diplomacy.
“The Europeans and the United States mistakenly believe they will gain new leverage by reviving terminated resolutions. History has proven this wrong, and will prove it again,” the statement said.
All UN sanctions suspended under the 2015 deal with Iran snapped back into force at 8 pm Eastern Time on September 27, one month after European powers triggered the so-called "snapback" mechanism. What are they, and what impact will they have?
The sanctions, first imposed between 2006 and 2010 under six Security Council resolutions, were suspended in 2015 when Resolution 2231 endorsed the nuclear deal (JCPOA).
They covered arms embargoes, travel bans, financial restrictions, prohibitions on nuclear- and missile-related activity and the freezing of assets belonging to designated individuals and entities.
Resolution 2231 set an October 18, 2025 deadline after which many restrictions were due to expire unless a so-called "snapback" mechanism was triggered.
On August 28, 2025, Britain, France and Germany (the E3) triggered the mechanism citing Iran's failure to comply with its nuclear obligations, beginning a 30-day process that culminated in the sanctions' return.
Why it matters
The return of UN sanctions is expected to hit Iran hard, even though it already faces sweeping US and EU measures.
The difference is that UN sanctions carry international legitimacy, compelling broader compliance by governments, insurers and banks worldwide.
Even if unilateral or secondary sanctions are eased, UN restrictions would remain in force and shape global behavior unless a new Security Council resolution overturns them.
The impact will extend beyond oil and finance, raising trade finance costs, shipping insurance premiums and currency volatility.
Which resolutions are being reimposed?
1696 (2006): Demanded Iran suspend enrichment; urged states to block nuclear or missile-related transfers.
1737 (2006): Banned supply of nuclear and missile technologies, froze assets of designated entities and imposed travel monitoring.
1747 (2007): Banned Iranian arms exports, expanded asset freezes and urged states and IFIs not to extend loans or financial aid beyond humanitarian needs.
1835 (2008): Reaffirmed previous measures without adding new ones.
1929 (2010): The most sweeping pre-JCPOA resolution, it:
Expanded an arms embargo to heavy conventional weapons.
Restricted shipping, insurance and financial services linked to nuclear and missile activity.
Prohibited Iran from investing abroad in sensitive industries.
Effectively blocked new foreign investment in oil and gas fields.
Created an expert panel to monitor compliance.
What’s the impact?
Reinstated sanctions will directly undermine Iran’s ability to export crude, attract investment and finance its energy sector.
Resolution 1929 is especially damaging, as it restricts shipping insurance and financial services essential for oil exports while deterring foreign energy companies.
Banking restrictions from Resolutions 1737, 174 and 1803 complicate oil sales and payments, cutting revenues. Lower government income will limit Tehran’s fiscal capacity, straining subsidies, salaries, and social programs.
Beyond oil, sanctions will intensify inflationary pressures, weaken the rial and increase transaction costs across supply chains.
The private sector will face new hurdles in accessing raw materials, technology, and international banking, compounding Iran’s broader economic crisis.
Western countries demanded Iran surrender its stocks of highly enriched uranium in exchange for only a few months of relief from UN sanctions, Iranian authorities said on Saturday, calling the offer humiliating.
“They demanded that we hand over all our enriched uranium and in exchange they give us a temporary relief of 90 days, which is absolutely unacceptable,” Iranian President Masoud Pezeshkian said on Saturday.
“If we are to choose between the unreasonable demands of the Americans and the snapback, our choice is the snapback,” Pezeshkian added, hours before the return of UN sanctions against Tehran.
Foreign Minister Abbas Araghchi also said Saturday that "the three European countries and the United States expected Iran to give up all its nuclear material or hand it over to them, in exchange for delaying the activation of the snapback mechanism by three or six months."
"This is the height of a brazen approach toward us, and we will not submit to such humiliation," Araghchi told Iran's state TV. "Iran will not accept the humiliating pressure over snapback."
The fate of Iran’s highly enriched uranium (HEU) stockpile of 400 kg (882 pounds) remains under investigation, while Tehran claims it is trapped under rubble after US attacks on three nuclear sites in June.
After triggering the so-called snapback mechanism on August 28, the Europeans asked Iran to address concerns over the highly enriched uranium stockpile, cooperate with the UN nuclear watchdog, and engage in talks with the United States.
Iran accuses US of swaying Europeans
While talks with European leaders had produced some convergence, Washington’s stance remained irreconcilable, Pezeshkian said upon arrival in Tehran after a visit to New York.
"On the snapback mechanism, we apparently reached an agreement with Europe, but when they spoke with the United States, they came up with various excuses."
Barbara Slavin, a longtime Iran analyst, wrote in a post on X that Pezeshkian told a private meeting France had floated a similar idea, proposing Iran hand over its enriched uranium in return for just one month’s extension.
The so-called snapback mechanism stems from UN Security Council Resolution 2231, which endorsed the 2015 Joint Comprehensive Plan of Action (JCPOA). It allows any participant to reimpose sanctions if Iran is judged in “significant non-performance.”
The United States, Britain, France and Germany argue that Iran’s growing uranium stockpile and failure to resolve International Atomic Energy Agency (IAEA) concerns meet that threshold.
A May 2025 IAEA safeguards report concluded Iran had concealed activities, sanitized sites, and retained undeclared nuclear materials, leading to its referral to the Security Council. The vote has now restored suspended measures.
On September 23, Iran's Supreme Leader reiterated that Tehran does not need and seek to develop nuclear weapons, so it enriches uranium to up to 60% purity, unlike nuclear-armed countries that enrich it up to 90% purity.
Iran has imposed new limits on stablecoin transactions, capping annual purchases at $5,000 per person and total holdings at $10,000, authorities announced on Saturday, as the rial plunged to a record low on the eve of the return of UN sanctions.
The decision, adopted during the Central Bank’s High Council session this week, applies to all traders and users on licensed digital platforms and must be implemented within a one-month transition period, according to Asghar Abolhasani, secretary of the High Council.
“From now on, the ceiling for purchasing stablecoins is set at $5,000 per user annually, and holdings cannot exceed $10,000,” Abolhasani told Iran's state TV.
He said those already holding stablecoins will have only a brief period to comply.
“The important point is that in regard to stablecoins currently in possession, a maximum one-month transition period has been set, during which the authorized ceiling for holdings must be observed.”
Stablecoins are digital tokens pegged to traditional currencies, with Tether (US dollar) being the most widely used.
In Iran, Tether has become a lifeline for households and traders seeking to protect savings from inflation or to move money abroad, offering the stability of the US dollar without the barriers of the formal banking system.
The new restrictions come as the rial continues to collapse, hitting an all-time low of 1,136,500 per US dollar on Saturday. The national currency is likely to lose further value amid the looming renewal of UN sanctions and worsening public confidence in government controls.
Stablecoins such as Tether have surged in popularity among Iranians since the war with Israel and US earlier this year. For many, converting rials into digital dollars has been the only way to preserve value.
The new cap is expected to affect thousands of small traders who have been making a living in crypto and could now face penalties for exceeding the legal ceiling.
The Central Bank’s move mirrors past efforts to curb demand for foreign currency during sharp market downturns. In earlier crises, authorities restricted access to dollars and gold in hopes of stabilizing the rial, but the measures had little long-term impact and often pushed transactions into black markets.