SnapBack on Iran: Implications for the Region and Cyprus

The potential activation of SnapBack on Iran, through UN Security Council Resolution 2231, is expected to have significant implications for the region, including Cyprus.

SnapBack refers to the automatic reinstatement of all sanctions initially imposed on Iran and relaxed in 2015 with the JCPOA agreement, due to non-compliance with the terms of the agreement regarding its nuclear program. The US has withdrawn from the JPCOA, while Russia and China do not agree with SnapBack.

If Iran does not comply within 30 days, an arms embargo will be imposed, and it will lose access to international financial systems. Oil exports, the regime's main source of revenue, will be minimized. The economic crisis in Iran is expected to worsen, with inflation rising and the rial further losing its value.

Cyprus may face increases in oil prices and problems in the energy sector and attracting investments. Regional instability could also hit the shipping sector.

Australia recently expelled the Iranian Ambassador and diplomats due to attacks on Jewish targets. Iran's terrorist activity abroad is a serious concern.