Unravelling the complexities of sanctions

Sanctions have become a linchpin of foreign policy. But as they have grown more complex, understanding their true impact on targeted economies has become increasingly difficult, and evidence of their firm-level effects is scant. Using transcripts from the annual meetings of Iranian public firms, this column explores the nature of multifaceted sanctions. While they are economically hurtful, these sanctions often fail to affect the interests of political elites. The complexity of such sanctions raises questions about their nature as precise tools capable of targeting specific entities to achieve distinct policy objectives.