How long could it take to fully dismantle US sanctions on Iran?

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Dismantling US Sanctions on Iran Could Take Years

Unwinding the extensive US sanctions regime on Iran presents significant legal, political, and commercial hurdles that are projected to span several years. While an initial interim schedule for abolishing sanctions is to be established within 60 days, the comprehensive removal of all restrictions involves a layered process that extends far beyond this initial timeframe. Experts liken the complete dismantling to peeling back an onion, suggesting a prolonged and intricate undertaking.
Interim Schedule and Initial Steps

An interim agreement outlines a 60-day period, which is extendable, for the US and Iran to forge a final deal. Within this timeframe, a schedule is to be established for the abolition of all types of sanctions. This initial phase includes immediate measures, such as the temporary general license issued by the US Treasury allowing the production and sale of Iranian oil and petrochemical products through August 21, potentially worth billions of dollars over two months.
Complexities of Sanctions Removal

The complete removal of sanctions is complicated by their multifaceted nature. These restrictions are embedded not only in executive orders, which a president can rescind, but also in congressional sanctions laws. Measures mandated by law, such as those related to groups like Hamas and Hezbollah, would require legislative action by Congress to be removed or amended, a process that faces potential political opposition.
Administrative and Legal Delays

Beyond legislative hurdles, administrative processes for delisting sanctioned entities would also contribute to the extended timeline. The Office of Foreign Assets Control (OFAC), which has imposed sanctions on over 1,000 entities since early 2025, would require at least a year to delist thousands of designated entities. This administrative workload, coupled with the need for coordination with international bodies like the UN and other countries, adds further complexity.
Private Sector Caution and Long-Term Outlook

Even if legal and political barriers are overcome, private companies may remain hesitant to re-engage with Iran due to lingering risks. Decades of sanctions have created a climate of wariness, and companies face potential lawsuits from victims of attacks under legislation like the 2016 Justice Against Sponsors of Terrorism Act. Consequently, significant multi-billion dollar commitments from the private sector are unlikely until the political landscape is far more cemented and stable, indicating a prolonged period before full economic normalization.

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How long could it take to fully dismantle US sanctions on Iran?

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