Toyota on August 11 announced that it was indefinitely suspending auto exports to Iran in order to comply with U.S. and international sanctions against the Islamic Republic, Agence France Presse reported. The Nikkei business daily also reported that while Toyota's exports to Iran may not violate U.S. sanctions, the company has decided to stop shipments because "firms continuing to deal with Iran have come under scrutiny from the U.S. government." The United States is a major market for the Japanese automaker-the company has projected that it will sell 2.17 million units in North America in the next year. By comparison, Toyota sold 4,000 units to Iran in 2008. The automaker's indefinite suspension of sales to Tehran follows a trend of companies, banks and oil conglomerates exiting the Iranian market as a result of sanctions.

U.S. and international sanctions on Iran have forced the Islamic Republic to pay 25 percent more than market rate to import gasoline, Reuters reported on August 5. The sanctions have specifically targeted Tehran's energy sector, causing most Western oil companies to cut or reduce their ties with Iran. "With the number of suppliers dwindling its a natural reaction for prices to get forced up, but this is a real worry for the Iranian government that is already battling high inflation," said Middle East analyst Meir Javendafar. "The Turks are saying we can be your friend in the region, but only for a price." Iran is the second-largest crude oil producer in the Organization of the Petroleum Exporting Countries (OPEC) but relies on imports for up to 40 percent of its gasoline needs because it lacks refining capacity.

CISADA strengthens the current law by requiring the president to investigate investments in Iran's energy sector. Moreover, it imposes sanctions on foreign companies that assist Iran in importing refined petroleum. As a result, major, multi-national energy companies have stopped conducting business with Iran.

• Just days after Congress passed the bill, France's Total, the last major Western fuel trader dealing with Iran, announced that it would stop providing refined petroleum to Tehran.
• Both BP and Royal Dutch Shell have suspended sales of jet fuel to Iran Air to comply with the new U.S. sanctions. Tehran is now having trouble refueling its airplanes at a number of major European airports.
• Even before passage of CISADA, major Western firms began pulling out of Iran because their U.S. operations or connections to the U.S. financial system would be at risk if they continued their Iranian operations.
• Glencore, Reliance, Vitol and Trafigura are among firms that previously ended sales of refined petroleum to Iran.  Tehran has been forced to seek out smaller and less reliable suppliers to meet its demands following the departure of these firms.

All ships, tankers and construction projects have insurance to protect the asset. As a result of CISADA, companies that knowingly insure entities that are advancing Iran's energy sector could be sanctioned by the U.S. As a result, major insurance firms are no longer insuring items that will help Iran.

• Lloyd's of London - a major insurance market that provides 8 to 10 percent of the global maritime insurance - announced that it would restrict insurance for any vessels shipping petroleum to Iran.
• Lloyd's General Counsel Sean McGovern made clear that the company is choosing to do business with the United States rather than Iran, saying, "The U.S. is an important market for Lloyd's and, in recognition of this, the market will not insure or reinsure refined petroleum going into Iran."
• Major international insurance and reinsurance companies began ending their Iranian business last year given the potential risks of losing access to the U.S. market. Allianz - Europe's largest primary insurer by gross premiums - and German reinsurance company Munich Re announced in February that they were suspending ties with Iran.

Fearing not being able to access the U.S. banking system, major financial companies and banks have broken off ties with Iranian firms. Being cut off from American banks will have a debilitating effect on Iranian companies as most monetary transactions go through the U.S. system.

• Companies across the financial sector have severed business ties with Iran. PricewaterhouseCoopers, Ernst & Young and the rest of the Big Four audit firms have all terminated their affiliations with Iranian firms.
• Many international banks previously ended relations with Iran as a result of U.S. efforts. The new regulations are likely to force out most of the remaining players, leaving Iran with the prospect of a collapse of its financial system, and certainly without the ability to attract foreign investment.

Despite sitting on the world's second largest oil reserves, Iran is dependent on Western companies to provide it with refined gasoline. U.S. sanctions have stifled Iran's efforts to develop their own refineries as firms are not willing to build there and companies have backed out of contracts with Iran to avoid sanctions.

• The South Korean firm GS Engineering & Construction announced that it has suspended its $1.89 billion project to construct a gas sweetening plant at Iran's South Pars natural gas field.  Without the facility, Iran will have significant untapped gas production capacity.
• Spain's Repsol announced that it would abandon planned investments in Iran's energy sector.
• The Internaional Energy Agency (IEA) projected that the new U.S. and European sanctions will "have a material impact" on Iran's energy sector and are "reduc[ing] its sources of fuel."
• Iran's maturing oil fields require advanced technologies simply to maintain current output. Iran has encountered difficulties in sourcing key components and technologies needed to increase production and efficiency.
• The IEA said that the Iranian government's plans to combat international sanctions by increasing its domestic production are "unrealistic" without access to this advanced technology.

Failure to implement these sanctions will leave policymakers only with two options: accepting a nuclear-armed Iran or using military action to prevent Iran from acquiring a nuclear weapons capability. Congress must ensure that the administration implements the necessary regulations and reports as required by the law.

• Turkish refiner Tupras began supplying gasoline to Iran in June after a hiatus of at least 18 months, according to a report in Reuters.  Tupras now supplies about half of Iran's monthly imports.  Iran's remaining imports come from two state-run Chinese traders, Chinaoil and Unipec, the latter of which is the trading arm of Sinopec.  
• Honeywell, is involved in the upgrading and construction of several refineries in Iran.
• The South Korean engineering firm Daelim Industrial announced it would continue to work in Iran despite U.S. sanctions. Daelim has two ventures in Iran including a $612 million project in the South Pars natural gas field, and a $260 million project to construct LNG storage tanks.
• Over 40 banks are still conducting business with the Islamic Republic.