US withdrawal from Iran deal paves way for uranium
President Donald Trump has withdrawn US from the landmark nuclear accord with Iran on, abruptly restoring harsh sanctions in the most consequential foreign policy action of his presidency. He declared he was making the world safer, but he also deepened his isolation on the world stage and revived doubts about American credibility.
The 2015 agreement, which was negotiated by the Obama administration and included Germany, France and Britain, had lifted most US and international economic sanctions against Iran. In exchange, Iran agreed to restrictions on its nuclear program, making it impossible to produce a bomb and establishing rigorous inspections.
But Trump, a severe critic of the deal dating back to his presidential campaign, said in a televised address from the White House that it was "defective at its core".
US allies in Europe had tried to keep him in and lamented his move to abandon it. Iran's leader ominously warned his country might "start enriching uranium more than before".
The sanctions seek to punish Iran for its nuclear program by limiting its ability to sell oil or do business overseas, affecting a wide range of Iranian economic sectors and individuals.
Major companies in the US and Europe could be hurt, too. Treasury Secretary Steven Mnuchin said that licenses held by Boeing and its European competitor Airbus to sell billions of dollars in commercial jetliners to Iran will be revoked. Certain exemptions are to be negotiated, but Mnuchin refused to discuss what products might qualify.
He said the sanctions will sharply curtail sales of oil by Iran, which is currently the world's fifth largest oil producer. Mnuchin said he didn't expect oil prices to rise sharply, forecasting that other producers will step up production.
Iran's government must now decide whether to follow the US and withdraw or try to salvage what's left with the Europeans. Iranian President Hassan Rouhani said he was sending his foreign minister to the remaining countries but warned there was only a short time to negotiate with them.
Laying out his case, Trump contended, "If we do nothing, we know exactly what will happen. In just a short period of time, the world's leading state sponsor of terror will be on the cusp of acquiring the world's most dangerous weapons".
The administration said it would re-impose sanctions on Iran immediately but allow grace periods for businesses to wind down activity. Companies and banks doing business with Iran will have to scramble to extricate themselves or run afoul of the US government.
Meanwhile, for nations contemplating striking their own sensitive deals with Trump, such as North Korea, the withdrawal will increase suspicions that they cannot expect lasting US fidelity to international agreements it signs.
Former President Barack Obama, whose administration negotiated the deal, called Trump's action "misguided" and said, "The consistent flouting of agreements that our country is a party to risks eroding America's credibility and puts us at odds with the world's major powers".
Yet nations like Israel and Saudi Arabia that loathed the deal saw the action as a sign the United States is returning to a more skeptical, less trusting approach to dealing with adversaries.
Israeli Prime Minister Benjamin Netanyahu welcomed Trump's announcement as a "historic move".
Trump, who repeatedly criticised the accord during his presidential campaign, said Tuesday that documents recently released by Netanyahu showed Iran had attempted to develop a nuclear bomb in the previous decade, especially before 2003. Although Trump gave no explicit evidence that Iran violated the deal, he said Iran had clearly lied in the past and could not be trusted.
Meanwhile, Pesident Hassan Rouhani has warned that Iran could restart enriching uranium "without any limitations" within weeks.
Rouhani's speech, broadcast live on state television within minutes of Trump's announcement, marked a doubling-down for the cleric who has seen his signature foreign policy achievement threatened by Trump for years.
Stressing that the accord remained a "multilateral" one, and not just with the US, Rouhani said he'd be sending Iranian Foreign Minister Mohammad Javad Zarif to the countries still in the deal — China, France, Germany, Russia and the United Kingdom.
Iran hopes the European Union will pass laws to protect European firms from any potential U.S. sanctions. EU officials have suggested they'll do what they can to salvage the agreement.
Still, Rouhani made a point of stressing that Iran, at any time, could resume its nuclear program.
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