Iran to boost uranium enrichment level above nuclear pact’s limit

Iranian President Hassan Rouhani is seen during meeting with health ministry top officials in Tehran, Iran, June 25, 2019. Official President website/Handout via REUTERS

By Babak Dehghanpisheh

GENEVA (Reuters) – Iran will boost its uranium enrichment after July 7 to whatever levels it needs beyond the cap set in the landmark 2015 nuclear deal, President Hassan Rouhani said on Wednesday, while calling on Washington to rejoin the pact.

Iran announced this week it has stockpiled more low-enriched uranium than is permitted under the accord, a move that prompted U.S. President Donald Trump – who withdrew the United States from the deal last year – to warn Iran was “playing with fire”.

European co-signatories said on Tuesday they were “extremely concerned” by Tehran’s apparent breach of the deal while Israel said it was preparing for possible involvement in any military confrontation between Iran and the United States.

Weeks of tensions crested last month when Tehran shot down a U.S. military surveillance drone and Trump responded with a decision to launch air strikes only to call them off at the last minute. Washington also accused Iran of being behind attacks on several oil tankers in the Gulf, which Tehran denies.

“Our level of enrichment will no longer be 3.67. We will put this commitment aside by whatever amount we feel like, by whatever amount is our necessity, our need. We will take this above 3.67,” said Rouhani, according to IRIB news agency.

Uranium refined to a fissile purity of 3.67% is deemed suitable for electricity generation and is the maximum allowed by the deal. Enrichment to 90% yields bomb-grade material.

Rouhani added that the Islamic Republic’s actions were reversible. “All of our actions can be returned to the previous condition within one hour, why are you worried?” he said.

His tone was unusually tough. Rouhani was the architect of the nuclear pact and is seen as a pragmatist, unlike senior clerics in Iran’s ruling elite who opposed his opening to the West and have kept up their denunciations of the United States.

Rouhani further urged the Trump administration to “adopt a rational approach again” and return to the negotiating table.

Trump’s “maximum pressure” policy aims to push Iran into negotiate a wider-ranging deal also reining in its ballistic missile program and its backing of proxies around the Middle East in a struggle with Saudi Arabia for regional dominance.

HEAVY-WATER REACTOR

Rouhani said that if the other signatories did not protect trade with Iran promised under the deal but blocked by Trump’s reimposition of tough sanctions, Tehran would also start to revive its Arak heavy-water reactor after July 7.

As required by the accord, Iran said in January 2016 that it had removed the core of the reactor and filled it with cement.

“From (July 7) onward with the Arak reactor, if you don’t operate (according to) the program and time frame of all the commitments you’ve given us, we will return the Arak reactor to its previous condition,” said Rouhani.

“Meaning, the condition that you say is dangerous and can produce plutonium,” he said, referring to a key potential component of a nuclear bomb. “We will return to that unless you take action regarding all your commitments regarding Arak.”

He kept the door open to negotiations, saying Iran would again reduce its stockpile of enriched uranium below the 300-kilogram limit set by the nuclear pact if signatories Britain, France, Germany, Russia and China honored their deal pledges.

Iran will gain nothing by departing from the terms of the deal, the French foreign ministry cautioned on Wednesday.

“Putting (the deal) into question will only increase the already heightened tensions in the region,” ministry spokesman Agnes von der Muhll told reporters in a daily briefing.

U.S. SANCTIONS NOOSE

Tensions between Washington and Tehran have escalated since Trump pulled Washington out of the pact in May 2018 and acted to bar all international sales of Iranian oil, the Islamic Republic’s economic lifeblood.

The European signatories to the accord have sought to pull the two longstanding adversaries back from the verge of military conflict, fearing a mistake could spiral into a wider Middle East war endangering global security and energy supplies.

Iranian Foreign Minister Mohammad Javad Zarif denies that Iran is in violation of the nuclear accord by exceeding the cap on low-enriched uranium, saying Iran is exercising its right to respond after the U.S. withdrawal.

The nuclear accord lifted most global sanctions against Iran in return for curbs on its uranium enrichment capacity.

It aimed to extend the time Tehran would need to produce a nuclear bomb, if it chose to, from roughly 2-3 months to a year.

Tehran has denied any intent to develop nuclear weapons.

Iran’s main demand – in talks with the European parties to the deal and as a precondition to any talks with the United States – is to be allowed to sell its oil at the levels that prevailed before Trump left the deal and restored sanctions.

Iranian crude exports were around 300,000 barrels per day or less in late June, industry sources said, a small fraction of the more than 2.5 million bpd Iran shipped in April 2018, the month before Trump abandoned the nuclear deal.

(Additional reporting by Parisa Hafezi in Dubai, John Irish and Sudip Kar-Gupta in Paris; Writing by Michael Georgy; Editing by Mark Heinrich)

Netanyahu says Trump knew in advance of Israel’s Iran archive mission

FILE PHOTO: Israeli Prime Minister Benjamin Netanyahu attends the weekly cabinet meeting in Jerusalem, June 30, 2019. Oded Balilty/Pool via REUTERS/File Photo

JERUSALEM (Reuters) – Israeli Prime Minister Benjamin Netanyahu said on Tuesday that he informed U.S. President Donald Trump in advance of what Israel has described as a spy mission in Tehran last year to capture a secret Iranian nuclear archive.

Netanyahu said in April 2018 that Mossad operatives had spirited thousands of hidden documents out of Tehran that proved Iran had previously pursued a nuclear weapons program. Trump cited the Israeli findings in his decision, a month later, to quit a 2015 deal that had scaled down Iran’s nuclear project.

Iran denies ever seeking nuclear weapons and has accused Israel of faking the Tehran mission and documents trove.

Awarding an Israeli national security prize on Tuesday to the Mossad team credited with the so-called “Atomic Archive” capture, Netanyahu said he had discussed the planned operation with Trump when they met at the Davos forum in January 2018.

“He asked me if it was dangerous. I told him that there was a danger to it that was not negligible, but that the outcome justified the risk,” Netanyahu said at the closed-door ceremony, according to a transcript issued by his office.

Netanyahu said that, when he later presented main findings from an Israeli analysis of the documents to Trump at the White House, the president “voiced his appreciation for the boldness”.

“I have no doubt that this helped to validate his decision to withdraw from this dangerous (Iran nuclear) deal,” he said.

With the United States having reimposed sanctions on Iran, tensions have been soaring in the Gulf in recent weeks.

Mossad officials have said the Tehran mission took place in February 2018, but have not given details on how the documents were brought out to Israel.

Six Mossad officers – four men and two women – received Tuesday’s prize for leading the mission, which also involved “hundreds” of others, the intelligence agency’s director, Joseph (Yossi) Cohen, told an international security forum this week.

(Writing by Dan Williams; Editing by Mark Heinrich)

Europeans urge Iran to abide by nuclear pact; Israel says preparing military

FILE PHOTO - French President Emmanuel Macron speaks to the media ahead of a European Union leaders summit that aims to select candidates for top EU institution jobs, in Brussels, Belgium June 30, 2019. REUTERS/Johanna Geron

By John Irish and Parisa Hafezi

PARIS/DUBAI (Reuters) – European signatories to a nuclear pact with Iran said on Tuesday they were “extremely concerned” by Tehran’s apparent breach of the 2015 deal, as Israel said it was preparing for possible involvement in any confrontation between Iran and the United States.

Iran announced this week it has amassed more low-enriched uranium than is permitted under the nuclear pact, a move that prompted U.S. President Donald Trump to say Iran was “playing with fire”.

“We regret this decision by Iran, which calls into question an essential instrument of nuclear non-proliferation,” the foreign ministers of Germany, France and Britain said in a joint statement with the EU’s High Representative on Iran. “We urge Iran to reverse this step and to refrain from further measures that undermine the nuclear deal,” they said.

Tensions between Washington and Tehran have increased since Trump pulled Washington out of the pact last year and moved to bar all international sales of Iranian oil. Washington also blames Iran for attacks on oil tankers in the Gulf, something Tehran denies.

The European signatories to the accord have sought to pull back the two longstanding foes from direct confrontation, fearing a mistake could lead to war accidentally.

Israel has encouraged the Trump administration to press ahead with sanctions against its arch-foe Iran, predicting that Tehran will eventually renegotiate a more limiting nuclear deal.

But Foreign Minister Israel Katz told an international security forum that Iran might accidentally stumble out of what he termed the “gray zone” of contained confrontation.

“It should be taken into account that mistaken calculations by the (Iranian) regime … are liable to bring about a shift from the ‘gray zone’ to the ‘red zone’ – that is, a military conflagration,” he said in a speech to the Herzliya Conference.

“We must be prepared for this, and thus the State of Israel continues to devote itself to building up its military might for the event that it will have to respond to escalation scenarios.”

Israel has long threatened to take preemptive military action to deny Iran the means of making nuclear weapons. Tehran says it has no such designs. One of its senior lawmakers warned on Monday that Israel would be destroyed within “only half an hour” should the United States attack Iran.

Iranian Foreign Minister Mohammad Javad Zarif denies that Iran is in violation of the nuclear accord by amassing more low-enriched uranium, saying Iran is exercising its right to respond following the U.S. pullout.

By exceeding the limit, Tehran could prompt the return of all international sanctions on Iran but one European diplomat, asked if Europe would trigger a dispute resolution mechanism that is part of the accord, said:

“Not for now. We want to defuse the crisis.”

A second diplomat said Britain, France and Germany would focus on bringing Iran back into compliance and that they wanted to gain more time for dialogue.

“In the immediate term, Iran must return to its obligations. There is room for dialogue,” a French diplomatic source added.

China, like France a signatory to the deal, said it regretted Iran’s move but urged all parties to exercise restraint and said the U.S. policy of increasing pressure on Iran was the “root cause of the current tensions”.

IRANIAN DEMANDS

The nuclear deal lifted most international sanctions against Iran in return for curbs on its nuclear work. It aimed to extend the time Tehran would need to produce a nuclear bomb, if it chose to, from roughly 2-3 months to a year.

Iran’s main demand – in talks with the European parties to the deal and as a precondition to any talks with the United States – is to be allowed to sell its oil at the levels before Washington pulled out of the deal and restored sanctions.

Iranian crude exports were around 300,000 barrels per day or less in late June, industry sources said, a fraction of the more than 2.5 million bpd Iran shipped in April 2018, the month before Trump withdrew from the nuclear deal.

Iran says it will breach the deal’s nuclear curbs one by one until it is able to sell that amount of oil, saying this is the least it should be able to expect from an accord that offered economic gains in exchange for nuclear restrictions.

Iran’s semi-official Fars news agency reported on Monday that the Islamic Republic’s enriched uranium stockpile had passed the 300kg (661 lb) limit allowed under the deal.

“We have NOT violated the #JCPOA,” Zarif wrote on Twitter, referring to the deal by the abbreviation of its formal title, the Joint Comprehensive Plan of Action.

Iran’s parliament speaker Ali Larijani accused Trump of trying to bully Tehran with his remark about playing with fire, and said such language would only made Iran stronger.

Zarif reacted with exasperation to a White House accusation that Tehran had long violated the terms of the deal.

“Seriously?” he said in a one-word message on Twitter, after White House press secretary Stephanie Grisham said in a statement that “there is little doubt that even before the deal’s existence, Iran was violating its terms.”

Her comment contrasted with CIA Director Gina Haspel&rsquo’s testimony in January to the Senate Intelligence Committee that “at the moment, technically, they are in compliance.”

(Additional reporting by Francois Murphy in Vienna, Writing by William Maclean and Alistair Bell; Editing by Jon Boyle and Grant McCool)

Israeli spymaster sees ‘one-time’ chance for peace with Arabs sharing Iran worries

FILE PHOTO: Mossad director Joseph (Yossi) Cohen gestures as he addresses a budgeting conference hosted by Israel's Finance Ministry in Jerusalem October 22, 2018. REUTERS/Ronen Zvulun/File Photo

By Dan Williams

HERZLIYA, Israel (Reuters) – Israel and U.S.-aligned Arab countries have a unique chance to forge a regional peace deal given their shared worries about Iran, the chief of Israel’s Mossad spy service said on Monday.

In a rare public appearance, Joseph (Yossi) Cohen said his agency had formed a task force designed to spot peacemaking opportunities in a region where only two Arab states, Egypt and Jordan, have full diplomatic relations with Israel.

“The Mossad today espies a rare opportunity, perhaps for the first time in Middle East history, to arrive at a regional understanding that would lead to a comprehensive peace accord,” he told the Herzliya Conference, an annual international security forum near Tel Aviv.

“Common interests, the fight against rivals such as Iran and jihadist terrorism, the close relations with the White House, and channels of communication with the Kremlin all combine to create what might be a one-time window of opportunity,” he said.

The United States convened Arab and other dignitaries in Bahrain last week to encourage investment in the Palestinian economy that might help renew peace talks with Israel. 

The Palestinians, seeing a pro-Israel bias in the Trump administration and a ruse to deny them their goal of full statehood, boycotted the Manama meeting. Israel, which sent only a non-official delegation, saw in the event a chance to bolster its wider ties to the Arab world.

Cohen, whose speech alluded to the Palestinians only in the context of threats against Israel from the armed factions, said many Arab countries “cannot stand Iran’s thuggish behavior”.

He cited Iran’s nuclear program, assistance for guerrillas in Lebanon, Syria, Yemen and elsewhere, and alleged responsibility for a recent spate of sabotage strikes on oil tankers in the Gulf. Iran denies any role in those incidents.

RAPPROCHEMENT PUSH

Cohen said Israel’s warming of relations with Oman, which Prime Minister Benjamin Netanyahu visited last October, followed “a lengthy covert effort by the Mossad” to seek out closer ties.

He pointed to what he termed “an expanding group of responsible, serious countries” – which he did not name – in the region that have channels of communication with Israel despite no formal relations, and cooperate with it in various ways.

Israeli Foreign Minister Israel Katz made a rare visit to Abu Dhabi, which does not have officials ties with Israel, for a two-day U.N. climate meeting on Sunday and Monday. While there, he met with an unnamed Emirati official to discuss bilateral ties as well as the Iranian threat, his office said.

Iran announced on Monday it had amassed more low-enriched uranium than permitted under its 2015 deal with major powers, its first major step in violation of the deal since the United States pulled out of it more than a year ago.

Cohen reaffirmed Israel’s policy that it would not allow its arch-foe to get a bomb. ”The Mossad or the State of Israel did not sign the nuclear deal (and) will do everything to ensure that Iran will never have nuclear weaponry,” he said.

Iran denies ever seeking to acquire a nuclear bomb.

“Currently, it’s about uranium enrichment at a relatively low percentage, and in amounts that are not large. The threat is to step up enrichment and increase the amounts,” Cohen said, speaking before news of the enrichment breach.

“Just imagine what will happen if the material stockpiled by the Iranians becomes fissionable, at military-enrichment grade, and then an actual bomb. The Middle East, and then the entire world, will be a different place. Therefore, the world must not allow this to happen.”

(Editing by Jeffrey Heller, William Maclean and Andrew Cawthorne)

Iran says it has breached 2015 nuclear deal’s stockpile limit

FILE PHOTO: Iran's Foreign Minister Mohammad Javad Zarif sits for an interview with Reuters in New York, New York, U.S. April 24, 2019. REUTERS/Carlo Allegri/File Photo

By Parisa Hafezi and Francois Murphy

DUBAI/VIENNA (Reuters) – Iran has breached the limit of its enriched uranium stockpile set in a 2015 deal with major powers, Foreign Minister Mohammad Javad Zarif said on Monday, according to the ISNA news agency, defying a warning by European co-signatories to stick to the deal despite U.S. sanctions.

Zarif confirmed that Iran had exceeded the relevant limit of 300 kg of uranium hexafluoride (UF6), but Foreign Ministry spokesman Abbas Mousavi said Iran’s steps to decrease its commitments to the nuclear deal were “reversible”.

The International Atomic Energy agency (IAEA) said that its inspectors were verifying whether Iran had accumulated more enriched uranium than allowed.

“Our inspectors are on the ground and they will report to headquarters as soon as the LEU (low-enriched uranium) stockpile has been verified, a spokesman for the U.N. agency said.

Enriching uranium to a low level of 3.6% fissile material is the first step in a process that could eventually allow Iran to amass enough highly-enriched uranium to build a nuclear warhead.

Last Wednesday, the IAEA verified that Iran had roughly 200 kg of low-enriched uranium, just below the deal’s 202.8 kg limit, three diplomats who follow the agency’s work told Reuters. A quantity of 300 kg of UF6 (uranium hexafluoride) corresponds to 202.8 kg of LEU.

After talks on Friday in Vienna, Iran said European countries had offered too little in the way of trade assistance to persuade it to back off from its plan to breach the limit, a riposte to U.S. President Donald Trump’s decision last year to quit the deal and reimpose economic sanctions.

Mousavi urged them on Monday to step up their efforts. “Time is running out for them to save the deal,” state TV quoted him as saying.

The deal between Iran and six world powers lifted most international sanctions against Iran in return for restrictions on its nuclear work aimed at extending the time Iran would need to produce a nuclear bomb, if it chose to, from roughly 2-3 months to a year.

ISRAEL WORRIED

Iran says its nuclear program is solely for peaceful purposes, including generating power. Its regional adversary Israel, which Iran does not recognize, says the program presents it with an existential threat.

Joseph Cohen, head of the Israeli intelligence agency Mossad, urged the international community to stop Iran from “stepping up enrichment”.

“Just imagine what will happen if the material stockpiled by the Iranians becomes fissionable, at military enrichment grade, and then an actual bomb,” he told the Herzliya security conference before Zarif’s announcement.

“The Middle East, and then the entire world, will be a different place. Therefore, the world must not allow this to happen.”

In May, Washington piled pressure on Tehran by ordering all countries to halt imports of Iranian oil, and tensions have been growing in the Gulf ever since.

Washington has dispatched extra forces to the Middle East, and U.S. fighter jets came within minutes of conducting air strikes on Iran last month after Tehran downed an unmanned American drone.

In a speech on Monday broadcast on state TV, Iranian Zarif said: “Iran will never yield to pressure from the United States … If they want to talk to Iran, they should show respect …

“Never threaten an Iranian … Iran has always resisted pressure, and has responded with respect when respected.”

Trump has called for negotiations with Iran with “no preconditions”, but Tehran has ruled out talks until the United States returns to the nuclear pact and drops its sanctions.

(Additional reporting by Babak Dehghanpisheh in Geneva; Francois Murphy in Vienna, Jeffrey Heller in Jerusalem; Writing by Parisa Hafezi; Editing by Kevin Liffey)

Last-ditch talks to keep Iran under nuclear limits headed for failure

Iran's top nuclear negotiator Abbas Araqchi and Secretary General of the European External Action Service (EEAS) Helga Schmit attend a meeting of the JCPOA Joint Commission in Vienna, Austria, June 28, 2019. REUTERS/Leonhard Foeger

By John Irish and Francois Murphy

VIENNA (Reuters) – Last-ditch talks to persuade Tehran not to exceed nuclear limits within days were on course for failure on Friday, as Iranian officials said their demands had not been met and Washington rebuffed European calls to ease sanctions to allow negotiations.

A week after Washington called off air strikes just minutes before impact, diplomats say Iran is on course within days to exceed the threshold of enriched uranium allowed under its nuclear deal with world powers, which Washington quit last year.

Any such move would reshape the diplomatic landscape, at a time when European officials are warning that a small mistake on either side could push the United States and Iran to war.

Iranian officials met in Vienna with representatives of the countries that are still party to the nuclear deal — Britain, France, Germany, Russia and China. The Iranians repeated their demand that they be allowed to sell oil.

The talks were a “last chance for the remaining parties … to gather and see how they can meet their commitments towards Iran,” Foreign Ministry spokesman Abbas Mousavi said.

Despite abandoning the deal, Washington has demanded European countries force Iran to continue complying with it. Iran says it cannot do so unless the Europeans provide it with some way to receive the deal’s promised economic benefits.

“For one year we exercised patience. Now it is the Europeans’ turn to exercise patience,” Mousavi said. “They should try to find solutions, practical solutions.”

French President Emmanuel Macron said this week that he would ask U.S. President Donald Trump to ease sanctions to allow negotiations to begin. But the plea seemed to have fallen on deaf ears, with Trump’s Iran envoy saying on Friday sanctions would remain in place to end Iranian oil exports altogether.

“We will sanction any imports of Iranian crude oil… There are right now no oil waivers in place,” Brian Hook, the U.S. Special Representative On Iran, told reporters in London.

European countries, which opposed Trump’s decision to abandon the deal and reimpose sanctions, have promised to find ways to allow Iran access to trade in return for continuing to comply. But in practice, the effort has failed, with major European companies canceling all plans to invest in Iran.

DEADLINES

Iran has set a number of deadlines in recent weeks after which it would cease complying with specific terms of the nuclear deal. The first expired on Thursday, the date Tehran said the quantity of enriched uranium it is holding could exceed the deal’s permissible threshold.

Diplomats in Vienna, headquarters of the U.N. nuclear agency IAEA, told Reuters on Thursday that the latest data from inspectors suggested the threshold had not yet been breached, but it could be as soon as Saturday or Sunday.

Another deadline, when Iran says it could enrich uranium to a purity forbidden under the deal, expires on July 7.

Iran says that if it does exceed thresholds, the steps would be reversible and it still aims to keep the deal in place.

The crisis between Iran and the United States that began with Trump’s withdrawal from the pact has escalated in recent weeks after Washington sharply tightened its sanctions from the start of May to halt all Iranian oil exports.

The Trump administration argues that the 2015 agreement reached under his predecessor Barack Obama was too weak because many terms are not permanent and it excludes non-nuclear issues such as missiles and Iran’s regional behavior. Washington says the aim of sanctions is to force Tehran to renegotiate.

Tehran says there can be no talks as long as sanctions are in place and Washington is ignoring the deal it already signed.

The confrontation took on a military dimension in recent weeks, with Washington blaming Tehran for attacks on ships in the Gulf, which Iran denies. Iran shot down a U.S. drone last week, saying it had entered its air space. Washington said the drone was in international skies, and Trump ordered, then aborted, retaliatory air strikes on Iranian targets.

Any move by Iran that violated the terms of the nuclear deal would put pressure on the Europeans to take sides.

“We will repeat to the Iranians that nuclear issues are not negotiable. We want them to stay in the accord, but we won’t accept them messing us around,” a senior European diplomat said before Friday’s meeting.

The cornerstone of European efforts to placate the Iranians is the creation of INSTEX, a mechanism to use barter to allow some trade that would avoid entanglement in U.S. sanctions.

Almost six months after it was created, it is still not operational and diplomats say it will be able to handle only small volumes for items like medicine, not the large oil sales Iran is seeking.

“If INSTEX fails to meet Iran’s demands within the framework of the nuclear deal, we will take the next steps more decisively,” Mousavi said, adding that “the implementation of the EU’s trade mechanism has been delayed due to some lack of commitments”.

(Additional reporting by Bozorgmehr Sharafedin and Guy Faulconbridge in London and Parisa Hafezi in Dubai; Editing by Peter Graff)

‘We only want to sell our oil,’ Iran official says before nuclear talks

FILE PHOTO: Oil tankers pass through the Strait of Hormuz, December 21, 2018. REUTERS/Hamad I Mohammed/File Photo

By Francois Murphy

VIENNA (Reuters) – Iran’s main demand in talks aimed at saving its nuclear deal is to be able to sell its oil at the same levels that it did before Washington withdrew from the accord a year ago, an Iranian official said on Thursday.

Iran is threatening to go over the maximum amount of enriched uranium it is allowed under the deal in retaliation for crippling U.S. economic sanctions imposed in the past year. It is just days away from that limit, diplomats say, and going over it could unravel the accord.

Senior officials from Iran and the deal’s remaining parties will meet in Vienna on Friday with the aim of saving the agreement. But with European powers limited in their ability to shield Iran’s economy from U.S. sanctions it is unclear what they can do to provide the large economic windfall Tehran wants.

“What is our demand? Our demand is to be able to sell our oil and get the money back. And this is, in fact, the minimum of our benefit from the deal,” the official told reporters on condition of anonymity.

“We are not asking Europeans to invest in Iran… We only want to sell our oil.”

European powers and Iran have set up a mechanism for barter trade called Instex that would net out amounts at either end but it is not yet operational and diplomats have said it will only be able to handle small volumes for items like medicine, not the large oil sales Iran is seeking.

“Europeans should either buy oil from us or give its money (price) to us,” the official said.

“Instex is a netting company. It is supposed to net the accounts between importers and exporters. And the only export of Iran to Europe is oil. So if they don’t buy oil from us there is no money to be netted between import and export.”

Until its demand is met, Iran will continue on its current path and go over limits of the deal one by one, starting with the uranium enrichment level, he said, adding that those steps could also be undone quickly, such as by ‘downblending’ enriched uranium with natural uranium to reduce its stock.

KILL THE DEAL?

Going over such central limits of the deal could prompt European powers to re-impose sanctions through a process known as ‘snapback’. The official said if that happened the deal would be dead.

“I believe and I think the Europeans are wise enough not to kill the deal for something which is easily reversible,” he said.

If the Europeans did, however, go to the U.N. Security Council to carry out the snapback process, that could prompt Iran to abandon its current policy of engagement and pull out of the nuclear Non-Proliferation Treaty (NPT) as North Korea did, he said.

“Going out of NPT doesn’t happen immediately. It needs three months’ notification in advance. Even in that scenario, there is still a chance for diplomacy,” he said.

(Reporting by Francois Murphy, Editing by Andrew Heavens, William Maclean)

U.S. peace plan conference is blip on Israel’s radar as political, Iran crises swirl

By Dan Williams

JERUSALEM (Reuters) – A U.S.-led conference in Bahrain designed to drum up investment in the Palestinian economy and pave a path to peace with Israel has gone largely unremarked by Israelis preoccupied with a political crisis and their arch-foe Iran.

Palestinians, who view the Trump administration as biased towards Israel, boycotted this week’s meeting in Manama.

It was also held without an official Israeli delegation.

Organizers said privately this was due to worry about a further dent to the event’s credibility after an election in Israel in April election failed to produced a new coalition government.

FILE PHOTO: Israeli Prime Minister Benjamin Netanyahu sits with his ministers and former Israel's Defence Minister Avigdor Lieberman at the plenum at the Knesset, Israel's parliament, in Jerusalem May 29, 2019. REUTERS/Ronen Zvulun

FILE PHOTO: Israeli Prime Minister Benjamin Netanyahu sits with his ministers and former Israel’s Defence Minister Avigdor Lieberman at the plenum at the Knesset, Israel’s parliament, in Jerusalem May 29, 2019. REUTERS/Ronen Zvulun

With Prime Minister Benjamin Netanyahu facing proliferating challengers in a new election due in September, and beset by corruption scandals, the hazier-than-ever peacemaking horizon with the Palestinians drew scant discussion in Israeli media.

Economy Minister Eli Cohen went as far as to suggest that Bahrain may have closed the door on further diplomacy.

“We saw that, even in an economic conference where the Palestinians were meant to come and get money, to come and get tools and inducements, to come and develop their economy, they did not come,” he told Israel’s Reshet 13 TV.

“We see, really, that they do not want a peace accord. They simply don’t want us here…Again, the Palestinians’ true face has been exposed.”

The Palestinians, who have shunned the United States since it recognized disputed Jerusalem as Israel’s capital in late 2017, suspected the conference sought to lure them into surrendering their statehood goal in return for global financial relief.

It is not clear whether a peace plan promised by the Trump administration will call for a “two-state solution” sought by the Palestinian Authority and backed internationally, which involves creation of a Palestinian state alongside Israel.

Netanyahu voiced conditional acceptance in 2009 of a future demilitarized Palestinian state. He has since said its creation would not happen on his watch and that he plans to annex some Jewish settlements in the occupied West Bank, communities many countries view as illegal.

Stalled since 2014, peacemaking has been on a backburner for some Israelis, while others feel a need to work for coexistence.

FILE PHOTO: White House senior adviser Jared Kushner speaks at the "Peace to Prosperity" conference in Manama, Bahrain, June 25, 2019. Peace to Prosperity Workshop/Handout via REUTERS

FILE PHOTO: White House senior adviser Jared Kushner speaks at the “Peace to Prosperity” conference in Manama, Bahrain, June 25, 2019. Peace to Prosperity Workshop/Handout via REUTERS

“This is a matter that’s important to me. We need an end to this situation,” said Jerusalem chef Israel Bachar, 45.

“It’s a little odd that the Americans held this (Bahrain) conference without convening the two main parties involved. I don’t think it’s helpful to try to impose things from outside.”

Netanyahu described the Bahrain gathering as part of a U.S. effort “to bring about a better future and solve the region’s problems”.

Two days before it opened, he toured the strategic Jordan Valley, the eastern-most part of the West Bank that borders Jordan, with U.S. National Security Adviser John Bolton and said Israel must retain a presence there in any peace deal.

Israeli journalists were at Bahrain, a rarity for a Gulf state that does not formally recognize Israel. The resulting coverage focused as much on wider Israeli-Arab contacts and Bahrain’s tiny Jewish community as on the Palestinian no-shows.

Cohen, a member of Netanyahu’s security cabinet, said Arab delegates saw Bahrain as a chance to close ranks with Israel on bilateral commerce and in the face of a common adversary.

“This was, in fact, a regional summit against Iran,” he said. “We see here a coalition in the Middle East…They (Arab powers) understand that their security threat is Iran.”

Washington and Tehran have exchanged threats and heated rhetoric in recent weeks, with a U.S. increasing sanctions on Iran and Iranian forces shooting down a U.S. drone in the Gulf.

The Institute for National Security Studies at Tel Aviv University gave a cautious welcome to the initiatives announced in Manama, including a global investment fund for the Palestinians. But it said these could not trump statecraft.

“While a willingness to earmark huge investments in economy, infrastructure, education, health, and welfare in the West Bank and Gaza Strip should be good news…what is also required is a political plan that is both creative and beneficial to the Palestinians,” INSS scholars Tomer Fadlon and Sason Hadad wrote.

Israel captured the West Bank and Gaza in the 1967 Middle East war. It pulled its troops and settlers out of Gaza in 2005 and Hamas Islamists, who have called for Israel’s destruction, now rule the enclave. Palestinians seek both territories for a future state.

(Writing by Dan Williams; Editing by Jeffrey Heller and Angus MacSwan)

Trump threatens “obliteration” as Iran slams sanctions on Khamenei

FILE PHOTO: Iran's Supreme Leader Ayatollah Ali Khamenei waves his hand as he arrives to deliver a speech during a ceremony marking the 30th death anniversary of the founder of the Islamic Republic Ayatollah Ruhollah Khomeini in Tehran, Iran June 4, 2019. Official Khamenei website/Handout via REUTERS

By Parisa Hafezi

DUBAI (Reuters) – U.S. President Donald Trump threatened on Tuesday to obliterate parts of Iran if the Islamic Republic attacked “anything American”, as Iran said the latest U.S. sanctions had closed off any chance of diplomacy.

“Any attack by Iran on anything American will be met with great and overwhelming force,” Trump tweeted just days the United States came within minutes of bombing Iranian targets.

“In some areas, overwhelming will mean obliteration,” the U.S. president tweeted.

Trump on Monday signed an executive order imposing sanctions against Supreme Leader Ayatollah Ali Khamenei and other senior figures. Sanctions against Foreign Minister Mohammad Javad Zarif are expected later this week.

“Imposing useless sanctions on Iran’s Supreme Leader and the commander of Iran’s diplomacy is the permanent closure of the path of diplomacy,” Iranian Foreign Ministry spokesman Abbas Mousavi tweeted.

“Trump’s desperate administration is destroying the established international mechanisms for maintaining world peace and security.”

The moves came after Iran shot down a U.S. drone last week and Trump called off a retaliatory air strike minutes before impact. It would have been the first time the United States had bombed Iran in decades of hostility between them.

Trump said last week that he had decided at the last minute that too many people would die.

In a televised address on Tuesday, Iranian President Hassan Rouhani said sanctions against Khamenei would have no practical impact because the cleric had no assets abroad.

Rouhani, a pragmatist who won two elections on promises to open Iran up to the world, described the U.S. moves as desperate and called the White House “mentally retarded” – an insult that other Iranian officials have used in the past about Trump, but a departure from Rouhani’s own comparatively measured tone.

Rouhani and his cabinet run Iran’s day-to-day affairs, while Khamenei, in power since 1989, is Iran’s ultimate authority.

“The White House actions mean it is mentally retarded,” Rouhani said. “Tehran’s strategic patience does not mean we have fear.”

U.S. SANCTIONS

The United States has imposed crippling economic sanctions against Iran since last year, when Trump withdrew from an agreement between Tehran and world powers to curb Iran’s nuclear program in return for the lifting of sanctions.

The crisis has escalated sharply since last month, when the Trump administration tightened the sanctions, ordering all countries to halt purchases of Iranian oil.

That has effectively starved the Iranian economy of the main source of revenue Tehran uses to import food for its 81 million people, and left Iran’s pragmatic faction with no benefits to show for its nuclear agreement.

Washington says the 2015 agreement reached under Trump’s predecessor Barack Obama did not go far enough because it is not permanent and does not cover issues beyond the nuclear program, such as missiles and regional behavior.

Iran says there is no point negotiating with Washington when it has abandoned a deal that was already reached.

The downing of the U.S. drone – which Iran says was over its air space and the United States says was international skies – followed weeks of rising tensions that had begun to take on a military dimension.

The United States and some regional allies have blamed Iran for attacks on tankers in the Gulf, which Tehran denies. Washington’s European allies have repeatedly warned both sides of the danger that a small mistake could lead to war.

(Reporting by Parisa Hafezi; Writing by Peter Graff and Kevin Liffey; Editing by Jon Boyle)

Iran says U.S. sanctions on Khamenei mean end of diplomacy

FILE PHOTO: Iran's Supreme Leader Ayatollah Ali Khamenei waves his hand as he arrives to deliver a speech during a ceremony marking the 30th death anniversary of the founder of the Islamic Republic Ayatollah Ruhollah Khomeini in Tehran, Iran June 4, 2019. Official Khamenei website/Handout via REUTERS

By Parisa Hafezi

DUBAI (Reuters) – New U.S. sanctions against Iran’s supreme leader and foreign minister have closed off diplomacy, Iran said on Tuesday, blaming the United States for abandoning the only route to peace just days after the two foes came within minutes of conflict.

U.S. President Donald Trump signed an executive order imposing sanctions on Monday against Supreme Leader Ayatollah Ali Khamenei and other senior figures. Sanctions against Foreign Minister Mohmmad Javad Zarif are expected later this week.

The moves came after Iran shot down a U.S. drone last week and Trump called off a retaliatory air strike minutes before impact, which would have been the first time the United States had bombed Iran in decades of hostility between them.

Trump said he decided at the last minute that too many people would die.

“Imposing useless sanctions on Iran’s Supreme Leader and the commander of Iran’s diplomacy is the permanent closure of the path of diplomacy,” Iranian Foreign Ministry spokesman Abbas Mousavi said on Twitter.

“Trump’s desperate administration is destroying the established international mechanisms for maintaining world peace and security,” Mousavi tweeted.

In a televised address, President Hassan Rouhani said sanctions against Khamenei would have no practical impact because the cleric had no assets abroad.

Rouhani, a pragmatist who won two elections on promises to open Iran up to the world, described the U.S. moves as desperate and called the White House “mentally retarded” – an insult Iranian officials have used in the past about Trump but a departure from Rouhani’s own comparatively measured tone.

Rouhani and his cabinet run Iran’s day-to-day affairs, while Khamenei, in power since 1989, is Iran’s ultimate authority.

“The White House actions mean it is mentally retarded,” Rouhani said. “Tehran’s strategic patience does not mean we have fear.”

Russian Foreign Minister Sergei Lavrov said the situation around Iran was developing toward a dangerous scenario, RIA news agency reported.

“OPEN DOOR”

Trump’s hawkish national security adviser, John Bolton, visiting Israel, repeated earlier offers to hold talks, as long as Iran was willing to go beyond the terms of a 2015 nuclear deal with world powers which Trump abandoned last year.

“The president has held the door open to real negotiations to completely and verifiably eliminate Iran’s nuclear weapons program, its pursuit of ballistic missile delivery systems, its support for international terrorism and other malign behavior worldwide,” Bolton said in Jerusalem. “All that Iran needs to do is to walk through that open door.”

The United States has imposed crippling economic sanctions against Iran since last year, when Trump withdrew from an agreement between Tehran and world powers to curb Iran’s nuclear program in return for the lifting of sanctions.

The crisis has escalated sharply since last month, when the Trump administration tightened the sanctions, ordering all countries to halt purchases of Iranian oil.

That has effectively starved the Iranian economy of the main source of revenue Tehran uses to import food for its 81 million people, and left Iran’s pragmatic faction with no benefits to show for its nuclear agreement.

Washington says the 2015 agreement reached under Trump’s predecessor Barack Obama did not go far enough because it is not permanent and does not cover issues beyond the nuclear program, such as missiles and regional behavior.

Iran says there is no point negotiating with Washington when it has abandoned a deal that was already reached.

The downing of the U.S. drone – which Iran says was over its air space and the United States says was international skies – was the culmination of weeks of rising tensions that had begun to take on a military dimension.

The United States and some regional allies have blamed Iran for attacks on tankers in the Gulf, which Tehran denies. Washington’s European allies have repeatedly warned both sides of the danger that a small mistake could lead to war.

Russian Security Council Secretary Nikolai Patrushev came to Iran’s support, saying the drone was in Iranian airspace when it was shot down and that the evidence on the tanker attacks was of poor quality and unprofessional, not enough to draw conclusions.

During a visit to Jerusalem, Patrushev also said it was unacceptable to portray Iran as a threat to international security and called for restraint to help defuse the situation.

Washington says forcing Iran to the table is the purpose of its sanctions. Tehran has said it is willing to talk if the United States lifts the new sanctions first, although Tuesday’s statements appear to toughen that stance.

Trump is leaving a path open to diplomacy with Iran but Tehran would be making a mistake if it interprets his restraint over the downing of a drone as weakness, U.S. disarmament ambassador Robert Wood told a conference in Geneva.

“We will not initiate a conflict against Iran, nor do we intend to deny Iran the right to defend its airspace but if Iran continues to attack us, our response will be decisive,” he said.

U.S. officials have launched a diplomatic campaign to rally their allies in the face of the escalating crisis. Foreign Secretary Mike Pompeo jetted to the Middle East on Monday to meet leaders of Saudi Arabia and the United Arab Emirates, Gulf Arab states that favor the toughest possible line against Iran.

The U.S. envoy on Iran, Brian Hook, is visiting Europe, where he is likely to get a frostier reception from allies who support the nuclear deal. They believe Trump’s decision to quit the accord was a mistake that has strengthened Iran’s hardline faction, weakened its pragmatists and endangered regional peace.

Iran says it still aims to comply with the nuclear deal, but cannot do so indefinitely unless it receives some benefits. It has given European countries until July 8 to find a way to shield its economy from U.S. sanctions, or else it will enrich uranium to levels banned under the deal.

(Reporting by Parisa Hafezi; Writing by Peter Graff; Editing by Jon Boyle/Mark Heinrich)