UPSC Prelims Practice Questions — U.S. sanctions 4 Indian firms over Iran imports
Q1. The Countering America's Adversaries Through Sanctions Act (CAATSA) of the United States is organised around sanctions on a defined set of target countries. Consider the following countries and the associated CAATSA sanctions heads:
1. Iran — measures relating to its ballistic missile programme, weapons of mass destruction and the Islamic Revolutionary Guard Corps
2. Russia — measures relating to its defence and intelligence sectors, including transactions with major defence enterprises
3. North Korea — measures relating to its trade and to goods produced by its nationals abroad
4. Venezuela — measures relating to its petroleum sector and state oil enterprise
Which of the above is/are NOT correctly identified as a CAATSA target country?
- Iran — measures relating to its ballistic missile programme, weapons of mass destruction and the Islamic Revolutionary Guard Corps
- Russia — measures relating to its defence and intelligence sectors, including transactions with major defence enterprises
- North Korea — measures relating to its trade and to goods produced by its nationals abroad
- Venezuela — measures relating to its petroleum sector and state oil enterprise
- A. 1 and 3
- B. 2 only
- C. 4 only
- D. 2 and 4
Q2. Which one of the following statutes provides the principal standing authority under which the US President may block property and prohibit transactions involving foreign parties, and on which the Office of Foreign Assets Control relies for most of its sanctions programmes?
- A. The Trading with the Enemy Act, 1917, which governs transactions with hostile powers in time of declared war
- B. The Countering America's Adversaries Through Sanctions Act, 2017, which codified sanctions on three named adversary states
- C. The Iran Freedom and Counter-Proliferation Act, 2012, which targets Iran's energy, shipping and shipbuilding sectors
- D. The International Emergency Economic Powers Act, 1977, which is invoked upon a declared national emergency
Q3. With reference to the sanctions campaign titled 'Operation Economic Outcast' announced by the United States in August 2026, consider the following statements:
1. Digital assets were among the sectors of Iran's economy covered by the new sectoral sanctions determinations announced under the campaign.
2. Gold was among the sectors covered by these determinations.
3. Shipping and aviation were among the sectors covered by these determinations.
4. The determinations extended to every sector of Iran's economy, so that all commercial dealings of any kind with Iran automatically became sanctionable.
Which of the statements given above is/are correct?
- Digital assets were among the sectors of Iran's economy covered by the new sectoral sanctions determinations announced under the campaign.
- Gold was among the sectors covered by these determinations.
- Shipping and aviation were among the sectors covered by these determinations.
- The determinations extended to every sector of Iran's economy, so that all commercial dealings of any kind with Iran automatically became sanctionable.
- A. 1, 2 and 3
- B. 1 and 4
- C. 2, 3 and 4
- D. 1, 2, 3 and 4
Q4. The launch of 'Operation Economic Outcast' in August 2026 was announced, as an unprecedented campaign to sever Iran's financial lifelines, by which one of the following US officials?
- A. The Secretary of State, Marco Rubio
- B. The Under Secretary of State for Economic Growth, Energy and the Environment
- C. The Secretary of the Treasury, Scott Bessent
- D. The Director of the Office of Foreign Assets Control
Q5. The Long-Term Main Contract of 13 May 2024 for equipping and operating the general cargo and container terminal at Shahid Beheshti Port, Chabahar was signed with Iran's Ports and Maritime Organization by which one of the following as the lead Indian entity?
- A. The Indian Ports Association, the apex body of major ports under the Ministry of Ports, Shipping and Waterways
- B. India Ports Global Limited, a public sector company under the Ministry of Ports, Shipping and Waterways
- C. The Shipping Corporation of India, a public sector undertaking under the Ministry of Ports, Shipping and Waterways
- D. Indian Port Rail and Ropeway Corporation Limited, a public sector company under the Ministry of Ports, Shipping and Waterways
Q6. Under the Long Term Main Contract signed on 13.05.2024, for how many years has the Government of India undertaken to equip and operate the General Cargo and Container Terminal at Shahid Beheshti Port, Chabahar?
- A. Five years
- B. Seven years
- C. Ten years
- D. Fifteen years
Q7. Consider the following participants:
1. China
2. Germany
3. India
4. The High Representative of the European Union for Foreign Affairs and Security Policy
Which of the above is/are correctly identified as a party to the Joint Comprehensive Plan of Action (JCPOA) concluded on 14 July 2015 along with the Islamic Republic of Iran?
- China
- Germany
- India
- The High Representative of the European Union for Foreign Affairs and Security Policy
- A. 1, 2 and 3
- B. 1, 2 and 4
- C. 2, 3 and 4
- D. 1, 3 and 4
Q8. The JCPOA was endorsed by the UN Security Council, and the procedure for reimposing previously terminated UN measures against Iran was laid down, in which one of the following resolutions?
- A. Resolution 1737
- B. Resolution 1929
- C. Resolution 2231
- D. Resolution 2140
Q9. In the context of United States measures against Iran, the expression 'secondary sanctions' denotes which one of the following?
- A. Restrictions that prohibit US persons and US-incorporated companies from dealing with the targeted state, its government and its nationals
- B. Restrictions imposed by the UN Security Council which every member state is obliged to give effect to through its own domestic law
- C. Restrictions that expose persons of third countries to designation for their dealings with the targeted state, chiefly by cutting off their access to the US market and dollar-clearing system
- D. Restrictions that apply only to foreign subsidiaries and branches of US-incorporated companies operating within the targeted state
Q10. The Office of Foreign Assets Control, which maintains the Specially Designated Nationals and Blocked Persons List, functions under the authority of which one of the following?
- A. The Bureau of Economic and Business Affairs of the Department of State
- B. The Bureau of Industry and Security of the Department of Commerce
- C. The National Security Division of the Department of Justice
- D. The Department of the Treasury
Q11. After Russia, which one of the following has been the largest source of India's crude oil imports by volume?
- A. Saudi Arabia
- B. Iraq
- C. United Arab Emirates
- D. United States
Q12. Consider the following statements comparing the United States sanctions action of August 2026 that named India-based entities with the earlier action of October 2025:
1. In the October 2025 action, over fifty individuals, companies and vessels were designated in all, and the India-based entities named in it were ship-owning and ship-management firms linked to specific tankers.
2. In the August 2026 action, four India-based companies were designated along with three Indian nationals, the largest single import value attributed to any one of them being about $69 million.
3. The August 2026 action marked the first occasion on which India-based entities were named in United States sanctions relating to Iranian petroleum and petrochemical trade.
Which of the statements given above is/are correct?
- In the October 2025 action, over fifty individuals, companies and vessels were designated in all, and the India-based entities named in it were ship-owning and ship-management firms linked to specific tankers.
- In the August 2026 action, four India-based companies were designated along with three Indian nationals, the largest single import value attributed to any one of them being about $69 million.
- The August 2026 action marked the first occasion on which India-based entities were named in United States sanctions relating to Iranian petroleum and petrochemical trade.
- A. 1 only
- B. 1 and 2 only
- C. 2 and 3 only
- D. 1, 2 and 3