What if I told you about a once-in-a-lifetime investment opportunity in a centrally located emerging market? If you hurry, you can beat out the competition and be one of the first investors on the ground there.
The catch? Well, the country may dabble in terrorism. Actually, it may be the world’s leading state sponsor of terrorism. And it may have one of the worst human-rights records of any nation in modern history.
We’re talking, of course, about Iran—a country with a rich cultural heritage dating back many centuries, but one under the oppressive grip of a brutal, theocratic regime. It’s a regime that hangs gay people. And imprisons innocent Americans. And threatens the annihilation of Israel. And denies the Holocaust. And sponsors terrorist organizations around the globe. And it’s a regime bent on acquiring nuclear weapons while pursuing intercontinental ballistic missiles capable of reaching the eastern seaboard of the United States.
Over the past decade, this behavior has prompted strong backlash from Congress in the form of crippling economic sanctions. The nuclear deal struck last summer—against the will of the American people and their elected representatives—lifted nuclear-related sanctions, but promised to keep in place those related to Iran’s human rights abuses and terror financing. In some instances, however, the line between nuclear and non-nuclear sanctions is blurred, causing confusion as to what business is now permitted.
   
As a result, foreign banks and companies are hesitant to reenter the Iranian marketplace. So now Secretary Kerry, under mounting pressure from Tehran, is embarking on an overseas tour to declare Iran open for business.
A report last month entitled “John Kerry’s Awkward Push for Investment in Iran” explains that the secretary of state “has negotiated himself into the odd position of explaining to Western banks how they can do business in Iran.”
It’s not going well. According to the Associated Press, “The Obama administration’s calls for restoring global business ties with Iran are falling flat in Europe, where risk-averse banks told U.S. Secretary of State John Kerry they don’t believe they can do business in the Islamic Republic without triggering U.S. sanctions.”
Moreover, earlier this month Secretary Kerry’s own State Department released its annual report on state sponsors of terrorism, which says that “Iran remained the foremost state sponsor of terrorism in 2015, providing a range of support, including financial, training, and equipment, to grounds around the world—particularly Hizballah.”
In addition, just last week, the Financial Action Task Force—an international organization that sets standards for anti-money laundering and counter-terrorist financing—decided to keep Iran on its list of “high-risk and non-cooperative jurisdictions.” So while Secretary Kerry is encouraging banks to do business in Iran, neutral third parties continue to “remain concerned with the terrorist financing risk emanating from Iran and the threat this poses to the international financial system.”
It’s important to keep in mind that the nuclear deal in no way, shape, or form obligates the U.S. government, much less the secretary of state himself, to lobby foreign banks or companies to do business with Iran. This effort by Secretary Kerry, along with the administration’s recent purchase of nuclear materials from Iran’s nuclear program, is just another unprecedented concession to Tehran.
As Speaker Ryan said this week, “Where does President Obama’s nuclear agreement state that Secretary Kerry must serve as Iran’s chief salesman? The fact remains that Iran is the world’s leading state sponsor of terrorism. Until that changes, businesses are right to be wary about reentering the Iranian marketplace.”

Source: Rep. Paul Ryan website, June 29, 2016