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IRAN-US-DIPLOMACY,WRAP-UPDATE
Trump warns world against business with Iran as sanctions return
TEHRAN, Aug 7, 2018 (BSS/AFP) – US President Donald Trump on Tuesday
warned the world against doing business with Iran as Washington reimposed
“the most biting sanctions ever” on the Islamic republic, triggering a mix of
anger, fear and defiance in Tehran.
Trump’s May withdrawal from a landmark 2015 nuclear deal with Tehran had
spooked investors and triggered a run on the Iranian rial long before the
punishing sanctions went back into force.
The sanctions reimposed on Tuesday, which target access to US banknotes and
key industries such as cars and carpets, were unlikely to cause immediate
economic turmoil.
Iran’s markets were actually relatively buoyant, with the rial
strengthening by 20 percent since Sunday after the government relaxed foreign
exchange rules and allowed unlimited, tax-free gold and currency imports.
But the second tranche of sanctions, which kicks in on November 5 and
targets Iran’s vital oil sector, could be far more damaging — even if
several key customers such as China, India and Turkey have refused to
significantly cut their purchases.
“The Iran sanctions have officially been cast. These are the most biting
sanctions ever imposed, and in November they ratchet up to yet another
level,” Trump wrote on Twitter.
“Anyone doing business with Iran will NOT be doing business with the United
States. I am asking for WORLD PEACE, nothing less.”
European governments — who signed the Iran nuclear deal along with
Washington — are infuriated by Trump’s strategy, which has prompted many of
their large firms to leave Iran for fear of US penalties.
Within hours of the sanctions taking effect, German carmaker Daimler said
it had “suspended our already limited activities in Iran in accordance with
the applicable sanctions”.
Trump said Monday that he was open to new talks to reach a “more
comprehensive deal” with Iran.
On Tuesday, his National Security Advisor John Bolton told Fox News: “We
want to see a much broader retreat by Iran from their support for
international terrorism, their belligerent military activity in the Middle
East, and their ballistic missile, nuclear-related programs.
“There’s a lot going on here that Iran needs to be held accountable for.”
But Iranian President Hassan Rouhani has dismissed the idea of talks while
sanctions are in effect, and accused America of waging “psychological
warfare.”
In Tehran, residents were on edge.
“I feel like my life is being destroyed,” said one construction worker on
the streets of the capital. “I can’t afford to buy food, pay the rent.”
– ‘Not got this right’ –
The return of US sanctions left some of Washington’s partners unimpressed.
British Foreign Office Minister Alastair Burt said that the “Americans have
really not got this right”.
The nuclear deal was important “not only to the region’s security but the
world’s security,” he told the BBC.
Russia’s foreign ministry said it was “deeply disappointed” by the return
of sanctions, adding that it would do “everything necessary” to save the 2015
nuclear deal.
Iranian Foreign Minister Mohammad Javad Zarif told reporters the global
reaction to Trump’s move showed that the US was diplomatically isolated.
– ‘Poison cup’ –
Most Iranians see US hostility as a basic fact of life, so their
frustration is largely directed at their own leaders for not handling the
situation better.
“Prices are rising again, but the reason is government corruption, not US
sanctions,” said Ali, a 35-year-old decorator in Tehran.
Long-running discontent over high prices, unemployment, water shortages and
the lack of political reform has sparked numerous protests over the past
week, though verifiable information is scarce due to heavy reporting
restrictions.
Many hope and believe that Iran’s leaders will “drink the poison cup” and
negotiate with the US eventually.
There have been rumours that Trump and Rouhani could meet in New York in
September on the sidelines of the UN General Assembly — though Rouhani
reportedly rejected US overtures for a meeting at last year’s event.
Two countries that have welcomed the tough new US policy are Iran’s
regional rivals, Israel and Saudi Arabia.
Israeli Prime Minister Benjamin Netanyahu hailed the renewed sanctions as
“an important moment for Israel, for the US, for the region, for the whole
world.”
Iran’s currency has lost around half its value since Trump announced the US
would withdraw from the nuclear pact, but has surged since Sunday, following
the arrest of the central bank’s currency chief and new plans being
announced.
The new rules mean foreign exchange bureaus will reopen after an attempt to
fix the value of the rial in April backfired spectacularly, with corrupt
traders making a fortune out of a mushrooming black market.
BSS/AFP/MRI/2328 hrs