U.S. considers ‘all options’ on Iran in seemingly tougher stance

By Arshad Mohammed, John Irish and Parisa Hafezi

WASHINGTON (Reuters) – The United States is ready to consider “all options” if Iran is unwilling to return to the 2015 nuclear deal, U.S. Special Envoy for Iran Rob Malley said on Wednesday in what may reflect a tougher stance toward Tehran’s new government.

In addition to using the phrase “all options,” which is typically intended to include the possibility – however remote – of military action, Malley also said the United States and Israel were united in opposing Iran developing a nuclear weapon.

Beyond citing U.S. consultation with Israel, which has previously struck nuclear sites in Iraq and Syria, Malley also said he would soon travel to Saudi Arabia, the United Arab Emirates and Qatar to coordinate with the U.S. Gulf allies.

“We will be prepared to adjust to a different reality in which we have to deal with all options to address Iran’s nuclear program if it’s not prepared to come back into the constraints” of Tehran’s 2015 nuclear deal with six major powers, he said in a virtual appearance at a Washington think tank.

Taken together, the comments suggested a more coercive rhetorical stance toward Tehran if it were unwilling to resume compliance with the deal, under which Tehran had agreed to limit its uranium enrichment program – which is a possible pathway to fissile material for a weapon – in return for sanctions relief.

Malley stressed it was still Washington’s preference for the United States, which abandoned the nuclear deal in 2018 during the Trump administration, and Iran, which began violating its nuclear limits about a year later, to both resume compliance.

Iran struck the deal, formally named the Joint Comprehensive Plan of Action (JCPOA), in 2015 with Britain, China, France, Germany, Russia and the United States.

“There is every possibility that Iran will choose a different path, and we need to coordinate with Israel and other partners in the region. I will be traveling to Saudi Arabia, UAE and Qatar in just a matter of days to talk about efforts to come back to (JCPOA) and what options we have to control Iran’s nuclear program if we can’t achieve that goal,” Malley said.

He said the two sides had made headway in their first six rounds of indirect talks in Vienna about reviving the deal, but he suggested the new Iranian government under President Ebrahim Raisi, who took office in August, may adopt a different stance.

Raisi’s aides have said Iran will return to Vienna “soon” but not set a date.

The European Union coordinator on Iran, Enrique Mora, plans to hold talks in Tehran on Thursday, a visit that comes at a critical time in efforts to revive nuclear talks with world powers and cannot be considered as “business as usual” given the worsening nuclear situation on the ground, E3 diplomats said.

“We do not see this visit as ‘business as usual,’ but rather as a crucial visit in the crisis,” diplomats from Britain, Germany and France said in a note on Wednesday.

(Reporting By Arshad Mohammed; Additional reporting by Parisa Hafezi in Dubai and John Irish in Paris; Editing by Jonathan Oatis and Nick Macfie)

President-elect Raisi backs nuclear talks, rules out meeting Biden

By Parisa Hafezi

DUBAI (Reuters) -President-elect Ebrahim Raisi on Monday backed talks between Iran and six world powers to revive a 2015 nuclear deal but flatly rejected meeting U.S. President Joe Biden, even if Washington removed all sanctions.

In his first news conference since he was elected on Friday, the hardline cleric said his foreign policy priority would be improving ties with Iran’s Gulf Arab neighbors, while calling on Iran’s regional rival Saudi Arabia to immediately halt its intervention in Yemen.

Raisi, 60, a strident critic of the West, will take over from pragmatist Hassan Rouhani on Aug. 3 as Iran seeks to salvage the tattered nuclear deal and be rid of punishing U.S. sanctions that have crippled Iran’s economy.

“We support the negotiations that guarantee our national interests … America should immediately return to the deal and fulfill its obligations under the deal,” he said.

Negotiations have been under way in Vienna since April to work out how Iran and the United States can both return to compliance with the nuclear pact, which Washington abandoned in 2018 under then-President Donald Trump before re-imposing sanctions on Iran.

Iran has subsequently breached the deal’s limits on enrichment of uranium, designed to minimize the risk of it developing nuclear weapons potential. Tehran has long denied having any such ambition.

Raisi said Iran’s foreign policy would not be limited to the nuclear deal, adding that “all U.S. sanctions must be lifted and verified by Tehran”.

Iranian and Western officials alike say Raisi’s rise is unlikely to alter Iran’s negotiating stance in talks to revive the nuclear deal – Iran’s hardline Supreme Leader Ayatollah Ali Khamenei has the final say on all major policy.

Asked if he would meet U.S. President Joe Biden if those sanctions were lifted, Raisi answered: “No.”

RIGHTS AND REGIONAL POLICY

Raisi is under U.S. sanctions over a past which includes what the United States and human rights groups say was his involvement in the extrajudicial killing of thousands of political prisoners in the Islamic Republic in 1988.

When asked about human rights groups’ allegations that he was involved in the killings, he said: “If a judge, a prosecutor has defended the security of the people, he should be praised.”

“I am proud to have defended human rights in every position I have held so far,” he said.

Gulf Arab states have said it would be dangerous to separate the nuclear pact from Tehran’s missile program and “destabilizing” behavior in the Middle East, where Tehran and Riyadh have fought decades of proxy wars, in countries from Yemen to Iraq.

Echoing Khamenei’s stance, Raisi said Iran’s “regional activities and ballistic missile program” were non-negotiable.

A Saudi-led coalition intervened in Yemen’s war in 2015 after Iran-backed Houthi forces drove its government out of the capital Sanaa. The conflict has been largely stalemated for several years.

“They (the United States) did not comply with the previous agreement, how do they want to enter into new discussions?” he said.

Sunni Muslim Saudi Arabia and Shi’ite Iran, which severed ties in 2016, began direct talks in Iraq in April aimed at containing tensions. “The reopening of the Saudi embassy is not a problem for Iran,” said Raisi.

(Reporting by Parisa Hafezi; writing by Raya Jalabi and Parisa Hafezi; Editing by Mark Heinrich and Timothy Heritage)

Khamenei says Iran should give up hope of European help against U.S. sanctions

DUBAI (Reuters) – Iranian Supreme leader Ayatollah Ali Khamenei said on Thursday European countries were unlikely to help Iran against U.S. sanctions, and Tehran “should give up all hope” in that regard, according to his official website.

Britain, France and Germany, parties to a 2015 nuclear deal with Iran, have tried to set up a trade mechanism to barter humanitarian and food goods with Iran after the United States withdrew from the deal last year and re-imposed sanctions. But the mechanism is still not operational.

Iran has repeatedly said it will ramp up its nuclear activities unless the European countries do more to protect its economy from the impact of the U.S. sanctions.

“Despite their promises, the Europeans have practically adhered to America’s sanctions and have not taken any action and are unlikely to do anything for the Islamic Republic in the future. So one should give up all hope on Europeans,” Khamenei was quoted as saying.

“There should be no trust in countries that have held the banner of hostility to (Iran’s) Islamic system, led by the United States and some European countries, because they are openly hostile to the Iranian people,” Khamenei said.

“The road to interaction and negotiations is open to all countries other than America and the Zionist regime (Israel),” Khamenei told members of a powerful clerical body.

(Reporting by Dubai newsroom; Editing by John Stonestreet and Peter Graff)

Iran supreme leader ups ante in volatile stand-off with U.S.

Iran's Supreme Leader Ayatollah Ali Khamenei waves during ceremony attended by Iranian clerics in Tehran, Iran, July 16, 2019. Official Khamenei website/Handout via REUTERS

By Parisa Hafezi

DUBAI (Reuters) – Iran’s supreme leader upped the ante in a volatile stand-off with the United States on Tuesday, warning Tehran would continue removing restraints on its nuclear program and retaliate for the seizure of an Iranian oil tanker.

Tensions have spiked since U.S. President Donald Trump last year abandoned world powers’ 2015 nuclear deal with Iran under which it agreed to curtail its enrichment of uranium in return for the lifting of global sanctions crippling its economy.

European parties to the pact decided on Monday not to trigger the deal’s dispute mechanism in favor of pursuing more talks and avert any U.S.-Iranian military conflict, but took no action to shield Iran against a sanctions clampdown by Trump.

Ayatollah Ali Khamenei, Iran’s ultimate authority, accused Britain, Germany and France of failing to uphold obligations under the deal to restore Iranian access to global trade, especially for Tehran’s oil exports blocked by U.S. sanctions.

“According to our foreign minister, Europe made 11 commitments, none of which they abided by. We abided by our commitments and even beyond them. Now that we’ve begun to reduce our commitments, they oppose it. How insolent! You didn’t abide by your commitments!” Khamenei said, according to his website.

“We have started to reduce our commitments and this trend shall continue,” Khamenei said in remarks carried by state television.

IRAN FUMES OVER EU INACTION

He has previously upbraided European powers for not standing up to Trump and circumventing his sanctions noose. Russia and China are also parties to the accord.

But it was the first time Khamenei explicitly pledged to press ahead with breaches of the nuclear deal, spurning European appeals to Iran to restore limits on enrichment aimed at obviating any dash to developing atomic bombs.

“So far, efforts to win gestures from Iran to de-escalate the crisis are not succeeding (as) Tehran is demanding the lifting of sanctions on its oil and banking sectors first,” a European diplomatic source told Reuters. 

Iran has long denied any intent to acquire nuclear weapons and has said all its breaches could be reversed if Washington returned to the deal and its economic dividends were realized. Tehran has accused Washington of waging “economic war”.

“Western governments’ major vice is their arrogance,” Khamenei said. “If the country opposing them is a weak one, their arrogance works. But if it’s a country that knows and stands up against them, they will be defeated.”

IAEA inspectors last week confirmed Iran is now enriching uranium to 4.5% fissile purity, above the 3.67% limit set by its deal, the second breach in as many weeks after Tehran exceeded limits on its stock of low-enriched uranium.

The level at which Iran is now refining uranium is still well below the 20% purity of enrichment Iran reached before the deal, and the 90% needed to yield bomb-grade nuclear fuel. Low-enriched uranium provides fuel for civilian power plants.

European Union foreign ministers, in a meeting on Monday, deemed Iran’s violations not to be “significant”, drawing Israeli accusations of appeasement recalling failed diplomacy with Nazi Germany in the run-up to World War Two.

British Foreign Secretary Jeremy Hunt said on Monday Iran remained “a good year away from developing a nuclear bomb”, adding there was still a “small window to keep the deal alive.”

The Europeans are trying to set up Instex, a barter-based trade conduit with Iran but it would initially deal only in items not subject to U.S. sanctions — such as pharmaceuticals and foods. Iran has said Instex must include oil sales or provide substantial credit facilities for it to be beneficial.

“PIRACY”

Khamenei also said Iran would respond to Britain’s “piracy” over the seizure in early July of an Iranian oil tanker in Gibraltar.

“Evil Britain commits piracy and steals our ship … and gives it a legal appearance. The Islamic Republic…will not leave this wickedness unanswered and will respond to it at an appropriate time and place,” he said.

Iran has called on Britain to immediately release the vessel, which was detained by British Royal Marines on the suspicion that it was breaking European sanctions by taking oil to Tehran’s close ally Syria.

Washington says it is applying “maximum pressure” on Iran to agree stricter limits on its nuclear capacity, curb its ballistic missile program and end support for proxy forces in a Middle East power struggle with U.S.-backed Gulf Arabs.

Fears of direct U.S.-Iranian conflict have risen since May with several attacks on oil tankers in the Gulf, Iran’s downing of a U.S. surveillance drone, and a plan for U.S. airstrikes on Iran last month that Trump aborted at the last minute.

In what loomed as another obstacle to trouble-shooting diplomacy, Iran confirmed on Tuesday it had detained French-Iranian scholar Fariba Adelkhah but declined to elaborate, a day after Paris demanded information on her case.

Rights activists have accused Iran of arresting a number of dual nationals to try and extract concessions from the West – a charge the Islamic Republic has repeatedly dismissed.

Iran’s rial currency appears to have stabilized despite the brewing confrontation with the United States, gaining about 13% since early May after a 60% plunge last year.

Analysts said that not only was Iran’s forex market growing used to the tensions but the central bank had propped up the rial through injections of hard cash and steps to ensure the return of dollars earned from exports.

(Additional reporting by John Irish in Paris; Writing by Mark Heinrich; Editing by Jon Boyle)

U.S. ratchets up pressure on Iran with resumption of sanctions

FILE PHOTO: Iranian rials, U.S. dollars and Iraqi dinars are seen at a currency exchange shopÊin Basra, Iraq November 3, 2018. REUTERS/Essam al-Sudani

WASHINGTON (Reuters) – The United States reimposes oil and financial sanctions against Iran on Monday, significantly turning up the pressure on Tehran in order to curb its missile and nuclear programs and counter its growing military and political influence in the Middle East.

The move will restore U.S. sanctions that were lifted under a 2015 nuclear deal negotiated by the administration of President Barack Obama, and add 300 new designations in Iran’s oil, shipping, insurance and banking sectors.

President Donald Trump announced in May that his administration was withdrawing from what he called the “worst ever” agreement negotiated by the United States. Other parties to the deal, including Britain, France, Germany, China and Russia, have said they will not leave.

Details of the sanctions will be released at a news conference scheduled for 8:30 a.m. EST (1330 GMT) with Secretary of State Mike Pompeo and Treasury Secretary Steven Mnuchin.

China, India, South Korea, Japan and Turkey – all top importers of Iranian oil – are among eight countries expected to be given temporary exemptions from the sanctions to ensure crude oil prices are not destabilized.

The countries will deposit Iran’s revenue in an escrow account, U.S. officials have said.

Washington has said it will ensure a well-supplied global oil market, with help from ally Saudi Arabia, as Iran oil is cut back. Front-month Brent crude futures, the international benchmark for oil prices, were at $72.53 per barrel on Monday.

The reimposition of the sanctions comes as the United States is focused on U.S. congressional and gubernatorial elections on Tuesday. Campaigning in Chattanooga, Tennessee, late on Sunday, Trump said his “maximum pressure” policy against Iran was working.

“Iran is a much different country than it was when I took office,” said Trump, adding: “They wanted to take over the whole Middle East. Right now they just want to survive.”

Earlier, thousands of Iranians chanted “Death to America” at a rally to mark the anniversary of the seizure of the U.S. Embassy during the 1979 Islamic Revolution.

The International Monetary Fund said on Thursday that Iran should implement policies to safeguard its macroeconomic stability in the face of sanctions.

Senior Iranian officials have dismissed concerns about the impact to its economy.

“America will not be able to carry out any measure against our great and brave nation … We have the knowledge and the capability to manage the country’s economic affairs,” Foreign Ministry spokesman Bahram Qasemi told state TV on Friday.

(Reporting by Lesley Wroughton; Additional reporting by Steve Holland in Chattanooga, Tennessee; Editing by Sonya Hepinstall)