Welfare Effects of Supporting or not Supporting US and EU SanctionsBy Major Buyers of Iran Oil

One of Iran's important trades with other countries in the world is oil. But the existence of a global communication network causes any disruption to Iran's oil exports to involve different parts of the world, even the United States and the European Union. In this study, in order to calculate the global effects of oil sanctions on Iran and the role of countries that buy oil from Iran, the Global Trade Analysis Project (GTAP) model is used. five areas Iran, the United States and the European Union, gulf(Persian) cooperation council countries, major buyers of Iran oil, and the rest of the world are considered. The results show that all regions, except the rest of the world, are affected by Iran's oil sanctions, and this damage is much greater for Iran and the major buyers of Iranian oil. Also, in order to study the behavior of Iranian oil sanctions, a game with complete information has been considered, in which the independent players, the United States and the European Union, are the main buyers of Iranian oil. According to the Nash equilibrium point, the equilibrium occurs where the US and the EU choose weak sanctions and the major oil buyers from Iran have the least support for US and EU sanctions. The results of the welfare analysis for a 50% political shock on Iran's oil exports also show that the most important factor influencing Iran's welfare decline is efficient allocation, which shows the destructive effects of sanctions on resource efficiency.