European Union and Iran to keep nuclear deal in place

Gas station in in Athens Greece

Gas station in in Athens Greece

Last Wednesday, United States President Donald Trump withdrew from the deal while calling it unfair and warned of severe consequences if Iran resumes its nuclear programme. "And if it continued, it would have given Iran extraordinary economic benefits without any guarantees of Iranian performance". Russian Foreign Minister Sergey Lavrov described the United States' pullout from the JCPOA as a violation of the UN Security Council and pointed out that Russia would press for preserving the treaty despite Washington's plans to restore the regime of sanctions against Tehran. From the economic perspective, watch for how European companies like Renault, Volkswagen and Fiat-Chrysler with plans to invest in Iran react to U.S. plans to resume sanctions against the Islamic Republic.

I worked hard over the short time I've been the Secretary of State to try and fix the deal.

"The only way to avoid pain from these sanctions is negotiating with the USA, but the instruments are not easy to find", Volker Treier, deputy managing director of Germany's Association of Chambers of Commerce and Industry, said in an interview.

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European officials have said they are looking for ways to help their companies escape the brunt of the USA sanctions. On the day Trump announced the withdrawal, Israeli warplanes launched airstrikes on Iran's facilities in Syria, allegedly in retaliation for an unconfirmed (according to the Guardian) Iranian missile attack on Israeli forces in the Golan Heights that failed to hit targets.

After long negotiations, Iran agreed in July 2015 to freeze its nuclear programme in return for the repeal of punishing worldwide sanctions.

Seeking to uphold what the European Union had considered its biggest diplomatic achievement in decades, the 2015 accord rests on allowing business with Iran in exchange for Tehran shutting down any capacity to build an atomic bomb.

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"I don't believe we will ever be able to put Humpty-Dumpty back together again", James Clapper, former director of national intelligence, said on "Fareed Zakaria's Global Positioning System". He followed through with a reimposition of sanctions on foreign companies that continue to do business with Iran, giving them either a 90-day or 180-day grace period to terminate their existing contracts, otherwise to face punitive measures by the USA government.

Others were dubious that withdrawing from the nuclear deal would prove effective, particularly since it shattered an worldwide alliance that worked to negotiate the deal with Iran.

Bolton said Europe was still digesting the May 8 move by Trump.

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The Rouhani's administration's hopes of keeping the nuclear deal alive now rest exclusively with Europe, which has large investments in Iran subject to US sanctions that will likely be imposed by the US Treasury once the "wind-down" period ends. "He makes the decisions, and the advice I give him is between us". "I am hopeful in the days and weeks ahead we can come up with a deal that really works, that really protects the world from Iranian bad behavior, not just their nuclear program but their missiles and their malign behavior as well", Pompeo added. They are not. One of the first effects will be a rise in oil prices which has already reached $77 a barrel and is forecast to rise higher.

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