Sanctions’ Double-Edged Sword: How the Boomerang of Sanctions Turns Against the US
webangah News Agency, International Desk: On November 1, the Trump governance imposed sanctions on two Russian oil giants, Rosneft and Lukoil, reaffirming washington’s unwavering reliance on sanctions as a core policy tool. According to U.S. Treasury Secretary Scott Besant, thes measures responded to Moscow’s alleged failure to commit seriously to the peace process in Ukraine. This action marks only the latest chapter in America’s heavy dependence on sanctions.
Official data show that active U.S. sanctions surged from 912 in 2000 to 9,421 by 2021-and still rising. What Washington initially promoted as an alternative to military intervention and a behavioral tool for target governments has become a double-edged sword inflicting heavy costs domestically-ranging from higher inflation and lost business opportunities to eroded diplomatic credibility and gradual weakening of dollar supremacy. The negative fallout of this entrenched sanction policy is now turning back against America.
The Sanction Frenzy: A Lose-Lose Game Over Decades
Since Iran became the first major target following the 1979 seizure of the U.S. embassy in Tehran, American economic sanctions have evolved into a four-decade-long worn-out strategy. At that time, President Carter froze approximately $8.1 billion of Iranian assets and enacted sweeping trade restrictions-the beginning of persistent punitive measures. The Trump administration escalated these efforts sharply by withdrawing from the JCPOA agreement in 2018 and imposing “maximum pressure” sanctions at unprecedented levels; it maintained this stance during its second term.
Congressional reports indicate Iran is one among over thirty countries targeted by new U.S. sanctions between 2018 and 2025. Alongside Iran, Venezuela has faced extensive “maximum pressure” sanctions as 2019; Cuba remains under an economic blockade for over six decades; North korea, Syria, Myanmar, Zimbabwe, Sudan,Yemen,and Belarus continue enduring sustained American sanction pressures spanning years.
The most recent move on October 22 targeted Rosneft and Lukoil-Russia’s two oil giants responsible for nearly half its production and roughly two percent globally-signaling Trump’s renewed commitment to sanction-centric policy despite earlier doubts.These companies each hold valuations exceeding $50 billion.The designation places them under Specially Designated Nationals (SDN) status; foreign entities engaging with them risk secondary sanctions themselves.
A thorough study by Peterson Institute for International Economics estimated that annual losses inflicted by U.S.of about $15 billion effect America’s economy through lost export chances while also spurring inflation increases domestically.International crude prices jumped roughly five percent following announcementsof Rosneft-Lukoil restrictions with experts warning potential gas price hikes at home could erode Trump administration popularity further.
Energy sector penalties applied after Russia’s February 2022 invasion severely affected Europe’s economy.Germany,the continent’s largest economy,saw investor confidence plunge dramatically-from +54.3in Februaryto −39 .3inMarch.OECD forecastedthatRussia-sanctionscouldlowerglobalgrowthratebyonepercentandincreaseinflationatleasttwopercentglobally.TheseeffectsextendbeyondtargetsofsanctionsimpactingbothalliesandtheUSitselfaswell.
Research shows American firms lose access not only temporarily but suffer lasting distrust as “unreliable suppliers.” Global companies waryoffuture penalties dropUSproductsfrom supply chain.This”stigma effect”imposeslong-termeconomiccostsurpassingdirectshort-termdamage.
Erosionofthedollar’scredibility:Aresponsefromemergingpowersandalternativemarkets
AmainconsequenceofAmerica’ssqligonpolicypathisthegradualweakeningofdollarhegemonyintheinternationalmarket.AccordingtoIMFdata,dollarcurrencyshareindevelopmentfundreserveaccountsdroppedfrom72percenttwo decade agoabout59 percentin20Twentyfourand57 .eightpercentbyendyear.Thedeclinegatherspaceascentralbanksseek alternatives.
B R I C Sblock-whichhas grownwithnewmembers Egypt,Ethiopia,UAE,Iran,and Indonesia totallingtencountries-isadvancingmajor plansreducingdollardependence.Chinaandrussiaprocuresover50percentagevaluejointtradedirectlyinyuanandrubleskippingthe dollar.IranandIndiasettle95percenttradevalueusingrialandropee,respectively.Thispatternexpands:Hindisigningsimilarcurrencyagreementswith UAE，Indonesia，othernations.
China’sexchangepaymentsystem (CIPS),asetoswiftalternative,reachedover1467indirectparticipantsacross119 nationsconnecting4800banks185countriesbyJanuary２０２５whilestillsmallerthanswiftitsfastgrowthreflectsincreasing trustinyuan-basedsystems.Russiaalsodevelopedfinancialmessagingsystem(SPFS)linkingseveralbanksonlineworldwide.<／Ｐ＞
＜Ｐ＞InOctober２０２４,theBRICSPayprototypewasrevealedinMoscow-a decentralized payment platformallowingnationalcurrency cross-bordertransactions.Basedon blockchaintechnology,itcanprocess20，000messagespersecondwithoutmandatoryfees.Stillearlystage,thisproject anticipatestobroadlyoperationalbeyond２０２５．Itdemonstrates BRICS's determinationto build infrastructuresoutsideUSDdominance．＜／Ｐ＞
＜Ｐ＞newdevelopmentbank（NDB）established２０１４undertheBRICSumbrellahasboostedloansinjurisdictionalcurrencies.Unlikethe IMF,NDBdoesnot impose harshpolitical termsallowingmemberstatestomitigaterisksof USDdenominateddebt。＜／Ｐ＞
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＜P＞ Meaningful developmentevidentintheenergycommoditiesmarket：china launchedyuan-denominated crudeoil futuresviaShanghai energyexchangeino208convertibleingtogoldShanghai HongKonggoldmarkets.ThismoveletChina purchasestockoilwithout relyingonthedollarthusdevelopinganon-dollarpricingmechanismforthisstrategiccommodity.As leading worldoil importersuch instrumentssignal significantdisruption attrect petrodollarsystem。 ＜／P＞
＜P ＞ WorldGoldCouncilreportedmorethan244tonsofgoldaccumulatedinthefirstquarter２０۲５.CentralBanksnowholdapproximately20percentageoftotalassetsinaluminum.Theresultrepresentsrecorddecadelongtrendswhere95percentageCentralBanksupervisorsplanreservedepletionincreasecomingyear.FurtherhighlightingshiftawayUSDtowards safervalueassetries。
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＜ｐ＞ DonaldTrumphimselfacknowledgesthreatposedbythis trend.hewarnedasearlyasjune２０２５thatanycountryreducing dollarpresencewouldface tariffsup100％ormore.These threatsillustrateWashingtonslimits applyingtraditionaleconomictools impedingdedollarization.Truthfullytheymay accelerate suchmovesabroadsettings network alternatives faster than expected。
〈P〉〈Strong〉FromDiplomaticIsolationToFracturedWesternUnity〈Strong〉
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《ｐ》Oneothertoxicexpense wroughtbyAmerica' sanctionwarsisharmeddiplomaticcreditwhichweakenestraditional alliances.AtfirstEuropeanfollowusacompletelyagainst Russiassanctionsloweverlatercomplained about costly consequences.Many German,French,and Italysubstantial investment happened yrs ago.Most recentlyoperations suffered allowancedecreaseorreduction.。TheHelms-BurtonActandthedualIranLibyaSanctionsAct(ILSA) enforcingsecondarysanctionsonforeigncompaniesconductingeconomicactivityCuba,Iran,libyaleadedeuropecanadacombustion.ThemattersseeninterferencecommandurbusinessnormsviewedsanEconomicwarfaretool firmly.EuropeCommissionrespondedin201８activating1996blockingregulation deem USIraniansanction illegal。
Research reveals undertwentyper centcasesagenda were achieved.Peterson findings found unilateral USJustice success falloutsharpen reducingcompared pre197０periodoverhalfachievedsuccess down13％post199０.Withglobalizingeconomies,barrioavailability internationalplatform alternativeprovidersdo exist wherederegimesfacingcripplingconsequences dealt experiences endured.Last,butnotleast,sanctious often bolster Trustedgoverningelitesholdingpower rather than ousting governments themselves。
Thistrendisalso visibleattitudewithintheUnitedStatesdomestictowardforeignpolicy.Disapprovalamongelectorate steadilyrisestorejected expense interventionsincludingsanctuhiples.Trump admittedJune۲۰۲۵:"Wheresancttionagainstcountry imposed,it costgreatlossesforUnitedStates."His words point tomountingevolvingawarenessamong electedofficialsandthinktanks alikereckoning highfact simulatedcollateraldamagepunishing others usingberaksandbarsforchange
Worldwide thesecountriesaidedintightensolidarity:PowerssuchIran,Russia ChinaNorthKorea,Venezuelanormalized expansion deepen cooperationeconomic diplomatic乃militaryoranyformdevelopchannels bypass unfairrestrictions fortify resilience.Duecomprehensiveunificationanti-west sentiments assembled becoming final platforms defy Western domination system comprehensively united axis oppose only before fragmented
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