In Iran, the snapback's 'economic shock is likely to be more psychological than practical'

Germany, France and the United Kingdom formally asked the United Nations on Thursday, Aug. 28, to trigger the snapback mechanism against Iran, citing Tehran’s failure to comply with the 2015 Vienna nuclear agreement.The mechanism would reinstate U.N. economic sanctions in place before the deal, including an arms embargo and a ban on producing nuclear-related technologies. The sanctions, expected to take effect within 30 days, could further fuel inflation, widen the budget deficit and weaken the currency.The Iranian Rial, already under pressure, nearly matched its April record low on the black market at 1,043,000 per U.S. dollar after the European announcement.Esfandyar Batmanghelidj, executive chairman of the Bourse & Bazaar Foundation think tank, spoke with L’Orient-Le Jour about the decision. Missed this analysis? Snapback...