In June 2010 the United Nations agreed on sanctions against Iran,
and in July 2010 the EU approved stricter controls to punish Iran for the nuclear
program it claims is for peaceful purposes. EU sanctions prevent companies from
investing in Iran's oil and gas sector and pressure banks to stop financing projects
in the country. This will accelerate Iran's trade reorientation towards China
and India, and may impact the domestic market as the government attempts to cut
off energy subsidies.