Araqchi Says No Deal If No Benefit for Iran
Pence: U.S. Will Not Certify Iran Nuclear Deal
WASHINGTON (Dispatches) -- The Trump administration will not certify the Iran nuclear deal, U.S. Vice President Mike Pence said Thursday, increasing the likelihood of re-imposition of U.S. sanctions on the Islamic Republic.
"The United States will no longer tolerate Iran's destabilizing activities across the region, and this country will no longer certify the disastrous Iran nuclear deal," Pence said during a speech at the Conservative Political Action Conference.
In January, President Donald Trump renewed waivers on nuclear-related sanctions for another 120 days but warned Congress and the U.S.' European allies that they need to change the nuclear deal or the U.S. would withdraw from it. That set a new deadline of May 11 for the next sanctions waiver.
Joe McMonigle, an analyst with Hedgeye Capital, said Thursday that Pence's comments show that the Trump administration is "walking down the road to deny the oil sanctions waiver at the next deadline in May."
"I think the only chance to save the Iran deal now is if the EU can get some kind of side agreement on ballistic missiles but I think Iran is unlikely to be cooperative," McMonigle said.
Iran produced 3.83 million barrels per day of crude in January, according to the latest S&P Global Platts OPEC survey, up about 1 million bpd from just before the nuclear deal went into force in January 2016.
Deputy Foreign Minister Abbas Araqchi said on Thursday Iran will withdraw from the 2015 nuclear deal if there is no economic benefit and major banks continue to shun the Islamic Republic.
Despite the deal, big banks have continued to stay away for fear of falling foul of remaining U.S. sanctions - something that has hampered Iran’s efforts to rebuild foreign trade and lure investment.
Araqchi said even if Trump relents and issues fresh "waivers” to continue suspending sanctions, the existing situation is unacceptable for Iran.
"The deal would not survive this way even if the ultimatum is passed and waivers are extended,” Araqchi, Iran’s lead nuclear negotiator, said in a speech at the Chatham House think tank in London.
"If the same policy of confusion and uncertainties about the JCPOA (Joint Comprehensive Plan of Action) continues, if companies and banks are not working with Iran, we cannot remain in a deal that has no benefit for us,” he said. "That’s a fact.”
Trump sees three defects in the deal: its failure to address Iran’s ballistic missile program; the terms under which international inspectors can visit suspect Iranian nuclear sites; and "sunset” clauses under which limits on the Iranian nuclear program start to expire after 10 years.
He wants all three strengthened if the United States is to stay in the JCPOA. Araqchi said Trump’s interpretation of the sunset clauses was wrong.
"There is no sunset clause in the JCPOA. Although the U.S. administration and Trump are talking about sunset clause and that JCPOA is just for 10 years, that is not true,” he said.
"Iran’s commitment in the JCPOA not to go for the nuclear weapons is permanent.”
He also reiterated Iran’s position that the JCPOA was a non-proliferation treaty and could not be linked to any other issue.
If the nuclear deal is linked to Iran’s ballistic missile program or its regional activities, world powers "not only will lose the JCPOA, but will make other issues more complicated and more difficult to resolve,” he said.
"If we lose the JCPOA, we will face another nuclear crisis,” Araqchi said.
"For the Europeans or the world community, when we talk about maintaining the JCPOA and saving it, it’s not a choice between the Iranian or the U.S. market, it’s not a choice for economic cooperation: it’s a choice between having security or insecurity,” he said.
"The United States will no longer tolerate Iran's destabilizing activities across the region, and this country will no longer certify the disastrous Iran nuclear deal," Pence said during a speech at the Conservative Political Action Conference.
In January, President Donald Trump renewed waivers on nuclear-related sanctions for another 120 days but warned Congress and the U.S.' European allies that they need to change the nuclear deal or the U.S. would withdraw from it. That set a new deadline of May 11 for the next sanctions waiver.
Joe McMonigle, an analyst with Hedgeye Capital, said Thursday that Pence's comments show that the Trump administration is "walking down the road to deny the oil sanctions waiver at the next deadline in May."
"I think the only chance to save the Iran deal now is if the EU can get some kind of side agreement on ballistic missiles but I think Iran is unlikely to be cooperative," McMonigle said.
Iran produced 3.83 million barrels per day of crude in January, according to the latest S&P Global Platts OPEC survey, up about 1 million bpd from just before the nuclear deal went into force in January 2016.
Deputy Foreign Minister Abbas Araqchi said on Thursday Iran will withdraw from the 2015 nuclear deal if there is no economic benefit and major banks continue to shun the Islamic Republic.
Despite the deal, big banks have continued to stay away for fear of falling foul of remaining U.S. sanctions - something that has hampered Iran’s efforts to rebuild foreign trade and lure investment.
Araqchi said even if Trump relents and issues fresh "waivers” to continue suspending sanctions, the existing situation is unacceptable for Iran.
"The deal would not survive this way even if the ultimatum is passed and waivers are extended,” Araqchi, Iran’s lead nuclear negotiator, said in a speech at the Chatham House think tank in London.
"If the same policy of confusion and uncertainties about the JCPOA (Joint Comprehensive Plan of Action) continues, if companies and banks are not working with Iran, we cannot remain in a deal that has no benefit for us,” he said. "That’s a fact.”
Trump sees three defects in the deal: its failure to address Iran’s ballistic missile program; the terms under which international inspectors can visit suspect Iranian nuclear sites; and "sunset” clauses under which limits on the Iranian nuclear program start to expire after 10 years.
He wants all three strengthened if the United States is to stay in the JCPOA. Araqchi said Trump’s interpretation of the sunset clauses was wrong.
"There is no sunset clause in the JCPOA. Although the U.S. administration and Trump are talking about sunset clause and that JCPOA is just for 10 years, that is not true,” he said.
"Iran’s commitment in the JCPOA not to go for the nuclear weapons is permanent.”
He also reiterated Iran’s position that the JCPOA was a non-proliferation treaty and could not be linked to any other issue.
If the nuclear deal is linked to Iran’s ballistic missile program or its regional activities, world powers "not only will lose the JCPOA, but will make other issues more complicated and more difficult to resolve,” he said.
"If we lose the JCPOA, we will face another nuclear crisis,” Araqchi said.
"For the Europeans or the world community, when we talk about maintaining the JCPOA and saving it, it’s not a choice between the Iranian or the U.S. market, it’s not a choice for economic cooperation: it’s a choice between having security or insecurity,” he said.