Executive Order 13846

Executive Order 13846
Name	Executive Order 13846
Signed	2018-08-24
Signed by	Donald Trump
Type	Executive order
Subject	Iran-related sanctions

Executive Order 13846 was issued on August 24, 2018, by Donald Trump to reimpose and expand sanctions tied to the Joint Comprehensive Plan of Action and related Iran sanctions regime after U.S. withdrawal from the JCPOA. The order invoked authorities associated with statutes such as the International Emergency Economic Powers Act and referenced actions by agencies including the Department of the Treasury and the Department of State. It shaped U.S. policy toward Iran through targeted measures on sectors, entities, and individuals linked to Iranian energy, financial, and shipping activities.

Background

The order followed the May 2018 announcement by Donald Trump withdrawing the United States from the Joint Comprehensive Plan of Action negotiated by parties including United Kingdom, France, Germany, Russia, China, and the European Union. U.S. engagement on Iran sanctions had earlier involved the United Nations Security Council via resolutions and bilateral measures by the United Kingdom, Canada, and Australia. Debates over the JCPOA engaged figures such as John Bolton, Mike Pompeo, and Rex Tillerson and institutions including the National Security Council and the Treasury Department's Office of Foreign Assets Control. The geopolitical context included tensions involving Iran–United States relations, conflicts in Syria, and sanctions issues tied to Hezbollah and Iranian-linked entities.

Provisions of the Order

The order authorized sanctions expansion under authorities like the National Emergencies Act and the International Emergency Economic Powers Act, directing the Secretary of the Treasury and the Secretary of State to identify persons for designation. It targeted sectors including petroleum, petrochemical industries, and shipping networks associated with Islamic Revolutionary Guard Corps-linked entities, and aimed at denying access to the U.S. financial system for designated actors. The measure specified directions for asset blocking consistent with Executive Order 13224-style authorities used against terrorist-linked persons and included carve-outs for humanitarian trade monitored by institutions such as the World Food Programme and International Committee of the Red Cross. It also referenced coordination with allies including United Kingdom, France, Germany, and multinational organizations like the Financial Action Task Force.

Implementation and Enforcement

Implementation responsibilities fell to the Department of the Treasury's Office of Foreign Assets Control, the Department of State, and the Department of Commerce, with interagency coordination by the National Security Council. Enforcement actions employed measures such as designation on the Specially Designated Nationals and Blocked Persons List, secondary sanctions guidance affecting non-U.S. persons, and use of the Committee on Foreign Investment in the United States where relevant. OFAC issued general licenses, administrative rulings, and enforcement advisories informed by investigations from agencies including the Federal Bureau of Investigation and the Internal Revenue Service's criminal investigators. Financial institutions such as JPMorgan Chase, Deutsche Bank, and HSBC faced scrutiny over compliance protocols and risk management tied to correspondent banking and anti-money laundering frameworks enforced via the Bank Secrecy Act overseen by the Department of the Treasury.

Affected Parties and Impact

Entities designated under the order included companies and individuals in sectors like energy, shipping, and financial services, with impacts on firms from countries including China, Russia, Turkey, and United Arab Emirates. International banks, multinational shipping registries such as Panama, and trading houses in South Korea and Japan adjusted operations to avoid secondary sanctions, while sovereign actors such as European Union institutions and the United Kingdom pursued mechanisms like the Instrument in Support of Trade Exchanges and special purpose vehicles to facilitate permissible trade. Iranian state-owned enterprises including those linked to National Iranian Oil Company and Bank Melli Iran were focal points, affecting global oil markets and insurance markets where players such as Lloyd's of London and Marsh & McLennan responded to risk assessments.

Legal Challenges and Litigation

Litigation over sanction designations involved U.S. district courts, the United States Court of Appeals for the District of Columbia Circuit, and occasionally matters reaching the Supreme Court of the United States on procedural and constitutional claims. Challengers included designated entities, foreign banks, and trade groups invoking statutes such as the Administrative Procedure Act and constitutional doctrines under the Due Process Clause. Cases referenced precedent from decisions involving Al Haramain Islamic Foundation and Global Relief Foundation on designation due process, and enforcement litigation drew on interpretations of the International Emergency Economic Powers Act in suits like those challenging other executive actions. Diplomacy and litigation intersected as European governments and multinational corporations weighed legal recourse against compliance and reputational risks.

Subsequent Developments and Related Policy

Subsequent administrations and Congress debated recalibration of Iran policy through tools including sanctions legislation in the United States Congress, proposals in the European Parliament, and multilateral efforts via the United Nations. Related policy developments included shifts in sanctions posture toward Iran under later executive actions, waivers for certain importers, and continued coordination with allies on enforcement through bodies such as the Financial Stability Board. Ongoing geopolitical events involving Israel–Iran conflict, Gulf Cooperation Council states, and sanctions on entities like Quds Force affiliates influenced policy evolution, while technological arenas such as cryptocurrency and blockchain adoption prompted regulatory attention by the Securities and Exchange Commission and the Commodity Futures Trading Commission.

Category:United States executive orders