Will more sanctions on Iran actually work? With the conflict involving Iran continuing, the obvious question is whether further economic sanctions would actually change Tehran’s calculations or simply make an already complicated situation more complicated.
Sanctions can certainly hurt. They can restrict access to foreign currency, reduce oil revenues and raise the cost of doing business. However, hurting an economy and changing a government’s behaviour are two very different things. Iran has lived under sanctions for years and has become rather good at finding ways around them.
So I am curious what investors think. Will further economic sanctions on Iran materially increase the chances of ending the conflict?
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