Executive Order 12170 was issued by American president Jimmy Carter on November 14, 1979, ten days after the Iran hostage crisis had started. The executive order, empowered under the International Emergency Economic Powers Act, ordered the freezing of all Iranian government assets held within the United States.
The release of the US hostages, as well as the unfreezing of Iranian assets and establishing arbitration for resolving claims on both sides was negotiated in the Algiers Accords; the accords were signed on the last full day of the Carter administration and assented to by the incoming Reagan Administration.
The order was first declared on 14 November 1979 (EO 12170). At least 11 executive orders were based on this emergency state. [1] The emergency, which was renewed in 2023 for the 44th time, is the "oldest existing state of emergency." [1] The renewal of the emergency state with respect to Iran was equal to continuation of non-nuclear US sanctions against Iran.
By 2014, this state of emergency was among 30 others which US was dealing with. According to Gregory Korte of USA Today, this state of emergency gives "extra ordinary powers" to the president to "seize property, call up the National Guard and hire and fire military officers at will," since it is declared by executive order. The language of such declarations are "nearly apocalyptic," according to the USA Today. Although bound by law to review the emergence declarations, Congress provides little "oversight" on them, said Korte. [2]
By 2016 (the year the Joint Comprehensive Plan of Action was implemented), some of the executive orders issued pursuant to the declared national emergency were terminated. [3] However, the situation was extended by President Barack Obama for an additional year, as he believed that US relations with Iran had not yet returned to normal, and the process of implementing the agreements with Iran, dated Jan. 19, 1981, Algiers Accords, had not been fully implanted. [1] "Despite the historic deal to ensure the exclusively peaceful nature of Iran's nuclear program, certain actions and policies of the Government of Iran continue to pose an unusual and extraordinary threat to the national security, foreign policy, and economy of the United States," wrote Obama in his letter to the Congress. [3]
Most of the U.S. sanctions against Iran are legally originated from this state of emergency. [1] This renewal meant that "non-nuclear US sanctions against Iran will remain in effect for at least another year." [4]
On November 6, 2017, President Donald Trump extended the national emergency for another year and wrote a letter to Congress. [5] [6]
The Office of Foreign Assets Control (OFAC) is a financial intelligence and enforcement agency of the United States Treasury Department. It administers and enforces economic and trade sanctions in support of U.S. national security and foreign policy objectives. Under presidential national emergency powers, OFAC carries out its activities against foreign governments, organizations, and individuals deemed a threat to U.S. national security.
Iran and the United States have had no formal diplomatic relations since 7 April 1980. Instead, Pakistan serves as Iran's protecting power in the United States, while Switzerland serves as the United States' protecting power in Iran. Contacts are carried out through the Iranian Interests Section of the Pakistani Embassy in Washington, D.C., and the US Interests Section of the Swiss Embassy in Tehran. In August 2018, Supreme Leader of Iran Ali Khamenei banned direct talks with the United States. According to the US Department of Justice, Iran has since attempted to assassinate US officials and dissidents, including US President Donald Trump.
The International Emergency Economic Powers Act (IEEPA), Title II of Pub. L. 95–223, 91 Stat. 1626, enacted October 28, 1977, is a United States federal law authorizing the president to regulate international commerce after declaring a national emergency in response to any unusual and extraordinary threat to the United States which has its source in whole or substantial part outside the United States. The act was signed by President Jimmy Carter on December 28, 1977.
The National Emergencies Act (NEA) is a United States federal law passed to end all previous national emergencies and to formalize the emergency powers of the President.
The Algiers Accords of January 19, 1981 was a set of obligations and commitments undertaken independently by the United States and Iran to resolve the Iran hostage crisis, brokered by the Algerian government and signed in Algiers on January 19, 1981. The crisis began from the takeover of the American embassy in Tehran on November 4, 1979, where Iranian students took hostage of present American embassy staff. By this accord and its adherence, 52 American citizens were able to leave Iran. With the two countries unable to settle on mutually agreeable terms, particularly for quantitative financial obligations, Algerian mediators proposed an alternative agreement model - one where each country undertook obligations under the accords independently, rather than requiring both countries to mutually adhere to the same terms under a bilateral agreement.
Following the Iranian Revolution, the United States has since 1979 applied various economic, trade, scientific and military sanctions against Iran. United States economic sanctions are administered by the Office of Foreign Assets Control (OFAC), an agency of the United States Department of the Treasury. As of 2017, United States sanctions against Iran include an embargo on dealings with the country by the United States, and a ban on selling aircraft and repair parts to Iranian aviation companies.
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The Iran and Libya Sanctions Act of 1996 (ILSA) was a 1996 act of the United States Congress that imposed economic sanctions on firms doing business with Iran and Libya. On September 20, 2004, the President signed an Executive Order to terminate the national emergency with respect to Libya and to end IEEPA-based economic sanctions on Libya. On September 30, 2006, the Act was renamed the Iran Sanctions Act (ISA). The Act was originally limited to five years, and has been extended several times. On December 1, 2016, ISA was extended for a further ten years.
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Iranian frozen assets in international accounts are calculated to be worth between $100 billion and $120 billion. Almost $2 billion of Iran's assets are frozen in the United States. According to the Congressional Research Service, in addition to the money locked up in foreign bank accounts, Iran's frozen assets include real estate and other property. The estimated value of Iran's real estate in the U.S. and their accumulated rent is $50 million. Besides the assets frozen in the U.S., some parts of Iran's assets are frozen around the world by the United Nations.
The Joint Comprehensive Plan of Action, commonly known as the Iran nuclear deal or Iran deal, is an agreement on the Iranian nuclear program reached in Vienna on 14 July 2015 between Iran, the P5+1, and the European Union.
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