US imposed more sanctions on Iran to weaken its oil export dependent economy. It imposed Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (CISADA) and put penalizing action against those who continued to maintain ties with Iran.
Due to sanctions, Bank of Kunlun in China and Elaf Islamic Bank in Iraq were punished for aiding Iran in making transactions worth millions of dollars.
What is the aim of fresh sanctions?
- The central aim is to prohibit Iran from establishing payment mechanisms for the trade of its oil by evading existing sanctions.
- Earlier, India, China and a few other countries had opposed US’ order to slash their oil imports from Iran.