Menu

Search

  |   Commentary

Menu

  |   Commentary

Search

Global Geopolitical Series: Tough time ahead of Iran as tough-love with EU sours

Good old nuclear agreement and sanctions removal days were long gone for Iran as President Trump took a much tougher stance than his predecessor Barrack Obama, who along with other world leaders (China, Russia, France, Germany, and United Kingdom) reached an agreement with Iran to curtail latter’s ambition of building a nuclear weapon in exchange for sanctions removal and economic access to global markets.

In last summer President Trump officially moved the United States out of the Iran nuclear agreement and since November has re-imposed all the sanctions that were removed after the deal was reached. Since other partners to the agreement re-endorsed the deal and especially European Union (EU) signaling commitment in preserving the agreement, Iran was hoping to have a better ride through the U.S. economic sanctions unlike 2011-2014, when joint sanctions by the EU and the U.S. forced the country to the negotiating table as exporting oil became extremely difficult with no insurers ready to offer shipping insurance to Iran. EU has shown its commitment by announcing millions of euro aid to Iran to compensate for the damage caused by the re-imposed U.S. sanctions. EU also announced setting up a special purpose vehicle that would support Iran’s oil exports by helping them to bypass U.S. sanctions.

However, recent happenings suggest that tougher times ahead of Iran as improving relationships with the European Union has taken a reverse course

  • Trouble between the EU and Iran began last year when EU member country the Netherlands expelled two Iranian diplomats accredited to the Iranian embassy in June. Some member countries came out suggesting that Iran has been plotting to assassinate several Dutch nationals with Iranian origin.
  • In Tehran on January 8 during a meeting with European envoys, Iranian officials abruptly stood up, walked out and slammed the door in an extraordinary break with protocol, as French, British, German, Danish, Dutch, and Belgian diplomats in the Iranian foreign ministry room had incensed the officials with a message that Europe could no longer tolerate ballistic missile tests in Iran and assassination plots on European soil. The same day as the meeting, the Netherlands publicly blamed Iran for killings on its soil in 2015 and 2017.
  • On the next day, EU designated a unit of Iran’s intelligence ministry a terrorist organization, froze its assets and those of two men.
  • To put a nail on the coffin, another EU member, Poland is set to host a summit called on by President Trump, focusing on the Middle East, and more especially on Iran and its alleged malign dealings in the Middle East.

The two-day Iran-focused summit would begin on 13th February.

  • Market Data
Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.