While United States and other Western sanctions technically have exemptions for food and other humanitarian goods, the Reuters report said the impact of the sanctions on Iran’s financial system have created complex and erratic payment arrangements with international companies.
The ships cannot enter Iran due to payment issues. The payment issues have left 40 ships stuck outside Iranian ports, which are estimated to be holding about US$1 billion worth of cargo.
Iran's Ports and Maritime Organization said in a report in November that some 37 ships loaded with 2.2 million tons of goods had not been able to unload due to "documentation and hard currency payment issues at Bandar Imam Khomeini.
Iran is expected to import 5.5 million tons of wheat in the 2022-23 season, down from 8 million in the prior season but still well above normal levels, based on the US Department of Agriculture data.
Alena Douhan, a UN special rapporteur, issued a report in September detailing how the US and other Western sanctions harm Iranians.
She said since US sanctions were reimposed in 2018, food insecurity has soared in Iran, reaching 60% in certain areas.
Douhan said that the sanctions have severely undermined the delivery of medicine and medical goods to Iran.
She said that licenses that are supposed to be issued by the US Office of Foreign Assets Control to ensure exemptions appeared to be ineffective and nearly non-existent.
There’s no sign that US sanctions on Iran will be lifted anytime soon, as video surfaced of President Biden saying the Iran nuclear deal, known as the JCPOA, is dead.
Since JCPOA talks fell apart in September, the US has increased sanctions on Iran.
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