How US sanctions on Iran could spread risks and costs worldwide

Editor's note: Professor Wang Jin is a Middle East expert and CGTN Commentator.

The article reflects the author's opinion and not necessarily the views of CGTN.

The impact of the new round of US sanctions on Iran has long extended beyond the bilateral relationship between the United States and Iran.

The sanctions will not only deepen Iran's economic and livelihood difficulties, but will also transmit their effects across the region and the wider world through energy, trade, finance and supply chains.

As the costs of sanctions continue to spill over, the United States is seeking to achieve its strategic objectives through economic pressure, but it may ultimately shift the risks and costs onto its allies and developing countries, creating a situation in which "the United States exerts the pressure while the world bears the cost." The US sanctions against Iran, as well as the threatened new round of sanctions, will further aggravate Iran's economic difficulties and place additional pressure on people's livelihoods.

Since the outbreak of the US-Iran conflict in late February, Iran's domestic economy has continued to deteriorate.

Recently, the Iranian rial fell below the level of 2 million rials per US dollar, while prices inside Iran have risen rapidly and the cost of living for ordinary people has increased.

Against this backdrop, a new round of US pressure on Iran will further exacerbate the country's economic difficulties and the hardships faced by its population.

Fresh US sanctions on Iran will further spread anxiety across international energy markets.

As the intensity of the US-Iran conflict has gradually declined, there have been widespread expectations that the two sides could resume dialogue, and the United States had even hoped to gradually lift its blockade and sanctions against Iran.

However, instead of reducing its military pressure on Iran, Washington has further increased economic pressure, expanding and strengthening the scope, areas and instruments of sanctions.

This has raised concerns within the international community that the US-Iran conflict could erupt again.

Against this backdrop, heightened fears will continue to push up international crude oil prices, while anxiety in international energy markets will further contribute to keeping energy prices at elevated levels.

US financial sanctions against Iran, particularly the demand that other countries choose sides, will further increase production costs in international energy markets.