Sanctions are back in the news with the tightening of restrictions by the US on Iranian oil exports. Iran’s economy has already been weakened by years of isolation and inflation is rising, as the IMF said last week. But some scepticism about whether the toughened measures will be effective is justified.
Just look at what has happened (or not) as a result of the extensive sanctions the US has imposed on Russia.
Anyone thinking that the regime of penalties is closing off trade and bringing Mr Putin to his knees should consider the international gas market. Despite the sanctions imposed after the annexation of Crimea, the interference in US politics and the attempted murder of former double agent Sergei Skripal and his daughter on British soil, Russia continues to build the capacity to preserve and strengthen its grip on gas as the market becomes more competitive.