In spite of a recent decision by U.S. officials that Iran was incapable at this moment of producing a nuclear weapon, President Barack Obama confirmed Thursday that trade sanctions will be imposed upon Iran for another year. This will continue the annual renewal of sanctions in place since 1995, and forbids U.S. companies from trading or investing with Iran.

Had the President not formally renewed the sanctions, initially put in place by former-president Bill Clinton, they would have expired later in the year. The initiative is propelled by U.S. fears at the start of this month that the Iranian nuclear program is a cover for the production of a nuclear weapon; though a report was issued denouncing claims that Tehran did not possess enough high-enriched uranium to produce a nuclear weapon, there are still concerns.

The move is apparently part of the direct diplomacy agreed upon by six major powers earlier this month. The UN is imposing three sets of sanctions for violations against Security Council orders which demanded a halt to uranium enrichment in the country; Tehran has repeatedly cited its right to do so through the Nuclear Proliferation Treaty for energy purposes.

Other aspects of the direct diplomacy approach included an earlier session of “haggling” with Russia regarding the proposed missile shield next to their country. The response of Russian President Dmitry Medvedev was a refusal to cooperate in an under-the-table deal, a series of correspondence which has since been officially explained by President Obama.

Though fears of nuclear armament in Iran was further perpetuated by an unsanctioned missile launch in the desert, Obama remains adamant that engagement talks with Iran are crucial, and could very well resolve the problem. Analysts say that the renewal of sanctions with Iran is simply nothing more than a precautionary measure, with the situation being so volatile at present, and does not necessarily mean hostility is in the air.

Mr. Obama, in his address to Congress, however, said: “The actions and policies of the Government of Iran are contrary to the interests of the United States in the region and pose a continuing and unusual and extraordinary threat,”.

The policy of the U.S. still remains the same, when discussing countries like Iran, who if they unclench their fists, will find an extended hand from the U.S.

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