Iran’s nuclear sanctions may stoke tensions between US, European allies: Analysis

WASHINGTON, Aug.6 (APP):As the US began re-imposing sanctions on Iran for its alleged nuclear program from Monday, the Trump administration and its European allies are facing prospects of a showdown over European firms, which may face secondary sanctions if they continue to do business with Tehran, says an analysis in leading American newspaper, the Washington Post.
Sanctions were relaxed on Iran after the 2015 deal that involved the US and world’s major powers that would scale back the alleged nuclear program. While, the UN said it was satisfied with the implementation of the accord by Iran, President Trump in May announced to rescind the accord alleging that the Islamic regime was not fully abiding the accord.
On Monday, the US began to put back those sanctions back in place. The first batch of sanctions would target several sectors, including automobiles, gold, steel and other key metals. A more stringent sanctions will follow three months later that will target Iran’s oil industry, the country’s economic lifeline.
In re-imposing the sanctions, President Trump also dismissed appeals by the European allies who wanted to keep the accord in-tact.
Re-imposition of sanctions threatens to stoke further tensions between the United States and the European allies, who will now be struggling to protect their companies, which still want to do business with Iran, and have already signed contracts with the Islamic country.
Any European companies, which opt to continue doing business with Iran after the US deadline may face secondary sanctions that could stoke tensions between the United States and its Western allies, the Washington Report said. Many European companies have already started to scale back their business engagements with Iran, fearing US sanctions.
The report sided with the UN observations that the Nuclear accord was working well, and warned the US that sanctions won’t work.
Impact of re-imposed sanctions have already started to impact the Iranian economy as it caused plunge in Iranian currency. The deal had provided a window of opportunity for Iran to open to the West after years of sanctions.
With those sanctions now back in place, Iran’s theocratic leadership is reverting to the vows of “resistance” and self-sufficiency that have animated the regime for nearly four decades, the report said, adding that its return has been instigated by Trump, who came to power vowing to unravel his predecessor’s signature diplomatic achievement.
The report, citing experts, said that though the sanctions would create problems for Iran, they will not crack the regime apart.
The sanctions coming back online are less asphyxiating that those in place before the forging of the nuclear deal. And while European partners may reluctantly heed pressure from the White House, key importers of Iranian energy, including India and China, may not go along so easily, the report said.