The lawsuit comes after the US formed an action group to put additional diplomatic and economic pressure on Iran. The US reimposed the first wave of sanctions on Iran three weeks ago, with more to come in November.
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Iran on Monday asked the International Court of Justice (ICJ) to lift sanctions imposed three weeks ago by the United States.
US President Donald Trump reintroduced the penalties in an effort to force Tehran to end its nuclear weapons program, and a second round of sanctions taking effect in November are due to hit Iran's oil and energy sector.
How did we get here:
On May 8 this year, the US withdrew from the 2015 Iran nuclear deal, under which Iran agreed to limit its nuclear activities in exchange for the removal of economic sanctions.
In June, the US reinstated sanctions lifted under the terms of the deal.
The first wave came into effect at the start of August.
Iran now argues the move violates the decades-old Treaty of Amity and Economic Relations signed between Iran and the US in 1955.
The first phase of US sanctions against Iran went back into effect in early August. Here's a breakdown of what the sanctions are targeting and how Iran has reacted to the measures.
Image: Reuters/TIMA/N. T. Yazdi
Sanctions signed off
US President Trump signed an executive order on August 5 aimed at piling financial pressure on Tehran to force a "comprehensive and lasting solution" to Iranian threats, including its development of missiles and regional "malign" activities. Trump warned that those who don't wind down their economic ties to Iran "risk severe consequences."
Image: Shealah Craighead
Where's the money?
The first phase, which took effect on August 7, targets the Islamic Republic's access to US banknotes, making transactions in a US-dollar dominated financial world difficult. A ban on Iran purchasing precious metals including gold further serves as an attempt to cut the country off from global markets.
Image: Getty Images/AFP/A. Kenare
Planes, cars and carpets
Phase one also hits key industries including the purchase of commercial planes, cars and carpets. Iranian imports of graphite, aluminum, steel, coal, gold and some software are also affected. German automaker Daimler called off the production and sale of Mercedes-Benz trucks in Iran indefinitely after the sanctions came into force.
Image: picture alliance/AP Photo
Fuel to the fire
A second phase of sanctions — which is due to take effect on November 5 and will block Iran's oil sales — is due to cause more damage. Several countries, however, including China, India and Turkey have indicated they are not willing to entirely cut their Iranian energy purchases.
Image: Reuters/R. Homavandi
'Psychological warfare'
Iranian President Hassan Rouhani said that the United States had launched "psychological warfare" against Iran to create division amongst its people. But he insisted that Iran still can rely on its allies China and Russia to keep its oil and banking sectors afloat. He has also demanded compensation for decades of American "intervention" in the Islamic Republic.
European Union foreign policy chief Federica Mogherini said the bloc is encouraging small and medium enterprises to increase their business with Iran. She said Tehran has been compliant with their nuclear-related commitments. The EU issued a "blocking statute" to protect European businesses from the impact of the sanctions.
Holly Dagres, a non-resident fellow at the Atlantic Council, told DW that the Treaty of Amnity has been referred to on numerous occassions by the US and Iran, dating back to the Iran hostage crisis that took place between November 1979 and January 1981.
"The fact that Iran has decided to sue the US over the reimposition of sanctions shouldn't be considered as unusual," Dagres said. "However, it's worth noting that Iran has not once referred to the ICJ when sanctions were imposed in the past."
Dagres said that while the Trump adminstration may argue that the treaty is no longer valid, previous US administrations have referred to it in the past.
Should Iran be unsuccessful at the ICJ, she said there would be little more they could do.
"If it doesn't work out at the ICJ, there aren't many options left for the Iranian government except to circumvent the sanctions, which they have a history of doing," Dagres said.
Iran nuclear deal — treaty under threat
A year after Donald Trump pulled the US from the international nuclear accord with Iran, the Middle East nation announced it would no longer adhere to some "voluntary commitments" in the accord.
Image: picture-alliance/epa/D. Calma
The deal breaker
President Donald Trump announced on May 8, 2018 that he was pulling the United States out of the 2015 Iran nuclear deal, arguing that the international accord was not in America's "national interest." The decision threw a cloud of uncertainty over the future of the nuclear accord and raised tensions with US allies in Europe.
Image: Reuters/J. Ernst
Slap in the face
Britain, France and Germany lobbied the Trump administration and Congress to remain in the nuclear accord, arguing that the deal was working and a US violation without a follow up plan would be destabilizing. In European capitals, the Trump administration's withdrawal was viewed as a slap in the face of allies.
Image: Reuters/K. Lamarque
Iran scrap 'voluntary commitments'
A year to the day after Trump's announcement, Iran informed the other signatories of the accord that they would no longer adhere to certain "voluntary commitments." Iranian President Hassan Rouhani said the signatory nations had 60 days to implement promises to protect Iran's oil and banking sectors or Iran would resume the enrichment of uranium.
The decision came after the United States deployed an aircraft, the USS Lincoln, along with a bomber task force to the Middle East. Washington said the deployment was intended as a "clear unmistakable message." Iran said it took action because the European Union and others "did not have the power to resist US pressure."
Image: AP
A triumph of diplomacy
The Joint Comprehensive Plan of Action (JCPOA), better known as the Iran nuclear deal, was signed in 2015 by United States, China, Russia, France, Germany and Britain (P5+1) and Iran following years of negotiations. Under the international agreement, Iran agreed to dismantle its nuclear program and be subject to monitoring in exchange for the lifting of international nuclear related sanctions.
Image: picture alliance / landov
Compliance and verification
The JCPOA includes a robust monitoring, verification and inspection regime carried out by International Atomic Energy Agency (IAEA). The UN watch dog has verified Iran's compliance with the deal in 12 quarterly reports. The JCPOA allows Iran to pursue a peaceful nuclear program for commercial, medical and industrial purposes in line with international non-proliferation standards.
Image: picture-alliance/dpa/R. Schlager
Obama's achievement
The Iran nuclear deal was President Barack Obama's signature foreign policy achievement. Seeking to undo nearly every Obama administration legacy, Trump came into office calling it the "worst deal ever." The Trump administration argues the nuclear deal doesn't address other unrelated issues such as Iran's ballistic missiles, regional influence, support for "terrorist" groups and human rights.
Image: Reuters/Y. Gripas
Iranians approved
The nuclear deal and lifting of punishing nuclear related international sanctions created optimism in Iran after years of economic isolation. However, even before Trump pulled the US out of the deal, Tehran blamed the US for holding back international investment and not fulfilling its end of the bargain due to the uncertainty created by Trump's threats.
Image: picture alliance/AA/F. Bahrami
The opponents
After eight years with Barack Obama, Israeli Prime Minister Benjamin Netanyahu found the US president he wanted in Donald Trump. The Israeli leader repeatedly slammed the deal despite his own military and intelligence chiefs' assessment the that JCPOA, while not perfect, was working and should be maintained. Saudi Arabia and the UAE are the other main opponents of the nuclear deal.
Image: Reuters/R. Zvulun
Who's left?
The EU-3 (Britain, France, Germany) have scrambled to ensure that Iran receives the economic benefits it was promised in order to avoid Tehran pulling out of the deal. As EU businesses face retaliation from the US for doing business with Iran, many are opting to avoid Iran. This would likely be a present to Chinese and Russian businesses.
Image: picture-alliance/Photoshot
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What is the 2015 Iran Nuclear Deal: The Iran nuclear deal was a historic diplomatic achievement to prevent Tehran's from developing a bomb. It lifted economic sanctions in return for Iran limiting its nuclear activities. The International Atomic Energy Agency monitors the deal and has said Iran has so far complied with all aspects.
War of words: The US and Iran have exchanged heated words over the deal. Donald Trump has called it a "horrible, one-sided deal," while Iranian Foreign Minister Mohammad Javad Zarif has accused Trump of "bullying" Tehran and violating the spirit of the international nuclear accord.
What is the Treaty of Amity and Economic Relations? The 1955 treaty emphasizes friendly relations between Iran and the US, while encouraging mutual trade and investments and regulating consular relations.
The US stance: Washington has not yet issued a public response and will respond formally in oral arguments on Tuesday. US lawyers are expected to argue that the ICJ should not have jurisdiction in the dispute, that the friendship treaty is no longer valid and that the sanctions do not violate it anyway.
The power of the ICJ: The ICJ is the UN tribunal for resolving international disputes. While its rulings are binding, it has no power to enforce them and they have been ignored by some countries in the past, including the US.
