Published: Thu, May 17, 2018

European Union top diplomats agree to follow through Iran nuclear deal

European Union top diplomats agree to follow through Iran nuclear deal

Emerging economies, many of them in Africa, are caught between agreements already made with Iran and what is likely to be a dispute between major economic powers, Europe and the USA.

"If the aggressive, then you could see some explosion on the diplomatic front".

The EU hopes to convince Iran to continue to respect the landmark nuclear pact. The Europeans have always understood that the economic benefits associated with having the agreement in place - maintaining access to the United States market and gaining access to Iran's - was a primary incentive to be party to the agreement.

The U.S. will restore the sanctions lifted by the deal in several months. "The director general has appointed Mr. Massimo Aparo, acting director, Office for Verification in Iran, as acting deputy director general and head of the Department of Safeguards, effective immediately". Other signatories to the JCPOA, however, criticized Trump's decision to unilaterally pull out. Saudi Arabia is threatening to build a nuclear weapon if Iran restarts its nuclear program - and with the crown prince in Riyadh bragging freely that he has Jared Kushner in his pocket, what will the administration do to stop them?

"All agreed that much remains to be done in coming weeks to practically guarantee economic benefits for Iranian people", Zarif tweeted.

They include retaliatory sanctions, allowing the European Investment Bank to invest directly in Iran and co-ordinating euro-denominated credit lines from European governments.

Meanwhile, EU imports from Iran increased by 83.9 percent a year ago. Roughly 120 German firms operate in Iran, and almost 10,000 German companies trade with Iran.

Iran's Foreign Minister Mohammad Javad Zarif leaves the EU council headquarters in Brussels Belgium

Trump's decision also has roiled politics in Iran, where President Hassan Rouhani has staked his political legacy on delivering prosperity for Iranians through the nuclear deal. Adebahr said that the issue is about the transatlantic relationship and what it means for Europe and the US.

Even if the commission and European Union leaders agree that the blocking statute should be used in the current situation, "it will be hard to have workable solution in particular for big companies that still have activities in the USA", an European Union source admitted. If a country significantly reduces its oil imports from Iran, the United States could waive the sanctions to permit that country's banks to maintain a relationship with the central bank of Iran.

Merkel said the Europeans aren't "blind" to threats posed by Iran's activities in Syria to Israel, for example.

Brent crude, the global benchmark for crude oil price, was trading at $77.97 at 6 a.m. EDT Wednesday, higher by over $3 since May 8.

But while some of the surge in gasoline prices could be attributed to market speculation over Trump's actions, other factors have been at play as well, such as political unrest in Venezuela and production cuts from the Organization of Petroleum Exporting Countries.

European Union and Iran agreed to hold intense expert consultations in coming days with an aim to boost economic, trade and investment cooperation, the European Union foreign policy chief added.

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