World powers back Iran oil exports despite USA sanctions threat

World powers back Iran oil exports despite USA sanctions threat

Since the United States president pulled Washington out of the historic nuclear deal, European countries have been scrambling to ensure that Iran gets enough economic benefits to persuade it to stay in the deal.

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Foreign ministers of Iran and the five remaining parties to the nuclear deal, officially known as the Joint Comprehensive Plan of Action (JCPOA), are scheduled to meet in Vienna on Friday to discuss ways of maintaining the worldwide accord after the USA pullout.

During the phone call, the German chancellor said that the discussion on details of the agreement should continue. "We are trying to do it (economic package) before sanctions are imposed at the start of August and then the next set of sanctions in November".

"We want to make it clear to Iran today that it still has economic benefits from this agreement", Maas told reporters.

US-Iran relations have been hostile since the 1979 overthrow of the US-backed shah and the US embassy hostage crisis.

Maas called the European offer "attractive" but conceded that "we won't be able to compensate for all the effects of enterprises withdrawing from Iran because they see their American business interests threatened by the sanctions". But even when those sanctions did materialize, Iran did not block the strait. This was extrapolated by U.S. officials as a threaten to shut down all regional oil shipping, when it could just as easily be interpreted as noting that Iran can basically export its oil under the guise of it coming from other regional countries, which is common behavior during sanctions.

But Washington has also warned European allies that they face possible penalties if they violate USA sanctions, which Washington says are aimed at reducing Iranian oil exports to "zero" - a level that would deprive Iran's economy of its principal source of revenue and economic growth.

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Rouhani warned on Wednesday that Iran could reduce its co-operation with the United Nations nuclear watchdog if the deal collapses.

In light of Washington's push on sanctions, European leaders have said they would do their utmost of maintain business ties with Iran but it would be hard for them to make any "guarantees".

This week, the European Parliament approved a key component of the package, giving the European Investment Bank authority to invest in Iran despite the US sanctions.

Reuters reports that whether the bank will invest in Iran is in doubt. "Enough with the policy of appeasement and weakness regarding Iran".

"If we have hope of future, we'll continue cooperation with Europe", Rouhani said.

Iran's economy is already suffering from the sanctions that Washington re-imposed after walking away from the nuclear agreement, and the USA has threatened to punish companies from other nations that continue doing business with Iran.

In May, U.S. President Donald Trump pulled out of the deal under which sanctions on Iran were lifted in return for curbs to its nuclear program.

Since Trump's announcement, Iran's rial currency has fallen, prices have risen and the country has been hit by street protests and strikes.

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