MC EXPLAINER Snapback explained: How new UN sanctions will squeeze Iran’s economy and isolate Tehran

Iran has pulled its ambassadors from France, Germany and the United Kingdom, escalating tensions just hours before the United Nations reimposes sanctions on Tehran.

The recall came after the three European countries, known collectively as the E3, set in motion a 30-day process to trigger the 'snapback' mechanism in late August, accusing Iran of failing to uphold its commitments under the 2015 nuclear deal (the Joint Comprehensive Plan of Action, or JCPOA).

President Masoud Pezeshkian slammed the move, rejecting a US offer to suspend sanctions for three months if Iran surrendered all its enriched uranium. 'Unacceptable,' he said flatly, as his government braced for penalties to take effect on Saturday night in New York (Sunday 0000 GMT).

What exactly is snapback?

The snapback clause was baked into the JCPOA when Iran struck the historic accord with six world powers., the US, UK, France, Germany, Russia and China.

It was designed to be veto-proof at the UN Security Council. If any signatory believed Iran was in breach, sanctions that had been lifted would automatically 'snap back' after 30 days, with no option for Russia or China to block the move.

As per Bloomberg, the penalties set to resume now are sweeping:

• Full arms embargo on Iran
• Ban on uranium enrichment and reprocessing
• Prohibition on ballistic missile development
• Freezing of Iranian assets abroad
• Global travel bans on designated individuals and entities Why Europe moved now For European powers, time was running out. Their right to trigger the mechanism expires on October 18, 2025. By acting now, they ensured Iran faces consequences for what they call 'significant non-performance' of nuclear commitments.

Efforts by Russia and China to delay the sanctions through a UNSC resolution failed. Only four countries, China, Russia, Pakistan and Algeria, voted to give Iran more time. The measure fell well short of the nine votes needed.

Western diplomats argued Tehran had left them no choice: it had ramped up uranium enrichment, curtailed access for IAEA inspectors, and refused to engage seriously in broader nonproliferation talks.

How sanctions will squeeze Iran

The timing couldn’t be worse for Tehran. Iran’s rial currency is already at a record low, forcing households to cut back on staples like meat, rice and cooking oil. The snapback sanctions will deepen the strain by:

• Freezing access to foreign assets and banking channels
• Cutting off arms trade and defence deals
• Further isolating Tehran from global markets

For ordinary Iranians, that means higher prices, more inflation, and fewer jobs. Analysts, cited by Bloomberg, warn the sanctions will push an already fragile economy closer to breaking point.

Iran’s defiance , but not a nuclear exit

Despite fiery rhetoric, President Pezeshkian signalled Iran won’t abandon the Nuclear Nonproliferation Treaty (NPT), the pact aimed at preventing the spread of atomic weapons.

“We do not have the intention to leave the NPT,” he told reporters in New York, even as he branded the sanctions “unfair and illegal.”

That’s a notable contrast with hardline Iranian negotiators who earlier hinted Tehran might follow North Korea’s 2003 playbook and quit the treaty altogether.

A fragile future for diplomacy

The return of sanctions underscores how far diplomacy has collapsed since the US under Donald Trump quit the JCPOA in 2018. While the Biden administration sought to revive talks, years of mistrust, Israeli-US airstrikes on Iranian facilities, and Tehran’s restrictions on IAEA monitoring have left negotiations in tatters.

The fallout will be global:

• Iran is likely to tilt further toward Russia and China, which opposed the E3 move
• Relations with Europe could hit a new low, reducing space for dialogue
• Global energy markets could see renewed volatility, given Iran’s role in oil flows

For now, Tehran insists its program remains peaceful, pointing out that IAEA and US intelligence assessments have not detected an active weapons program since the early 2000s. But with sanctions back in force, its path forward looks even more constrained.