To understand the dynamics involved in U.S. policy on Iran, it is important to mark the difference between direct and indirect economic sanctions. Direct sanctions bar specific individuals and companies from conducting international trade, using the global banking system or traveling abroad and in some cases result in asset freezes. Most direct sanctions are established and enforced by executive order, and the president has some leeway in easing these sanctions. However, they are not the sanctions that are allegedly crippling Iran’s economy. Indirect sanctions, on the other hand, are based in U.S. law and cannot easily be offered up as bargaining chips in the current negotiations. These sanctions are sometimes called business-choice sanctions or extraterritorial sanctions. They are meant to affect Iran’s overall economy rather than punish or stop illicit proliferation activities, which is the focus of direct sanctions. Indirect sanctions work by offering firms a choice […]