Tag Archives: Sanctions

Netanyahu opposes Iran talks after Trump moots meeting Rouhani

Israeli Prime Minister Benjamin Netanyahu speaks during a state memorial ceremony at the Tomb of the Patriarchs, a shrine holy to Jews and Muslims, in Hebron in the Israeli-occupied West Bank September 4, 2019. REUTERS/Ronen Zvulun

LONDON (Reuters) – Israeli Prime Minister Benjamin Netanyahu urged world powers on Thursday not to open a dialogue with Iran, after U.S. President Donald Trump said he may meet his Iranian counterpart to resolve a crisis over Tehran’s nuclear project and sanctions against it.

“This is not the time to hold talks with Iran. This is the time to increase the pressure on Iran,” Netanyahu told reporters en route to London, where he was hosted by British Prime Minister Boris Johnson and was later scheduled to confer with U.S. Defense Secretary Mark Esper.

Netanyahu’s comments marked rare public discord between the right-wing Israeli leader and Trump on the Iranian nuclear issue. Netanyahu had previously counseled France against its own outreach to Iran.

The Israeli leader, who is fighting for his political life in an election on Sept. 17, regularly touts his influence with Western leaders, especially fellow rightwingers such as Trump and Johnson, as vital for Israeli security. His opponents say his closeness to rightwing figures abroad hurts Israel by making support for it a partisan issue in friendly countries.

On Wednesday, Trump left the door open to a possible meeting with Iranian President Hassan Rouhani at the upcoming U.N. General Assembly in New York, saying: “Anything’s possible. They would like to be able to solve their problem.”

Tehran has rejected any negotiations with Washington unless Trump drops sanctions he imposed after quitting the 2015 Iranian nuclear deal, an agreement Netanyahu had savaged as inadequate.

Iran has said that, starting on Friday, it would begin developing centrifuges to speed up the enrichment of uranium, which can produce fuel for power plants or for atomic bombs. The Iranians deny seeking nuclear weapons.

The centrifuge move would be Iran’s latest reduction of its commitments to restrict nuclear projects under the 2015 deal.

Netanyahu called this “another violation, another provocation by Iran, this time in the realm of its quest for nuclear weaponry”.

Meeting Johnson at 10 Downing Street, Netanyahu praised the politically embattled British leader for his “staunch stance against anti-Semitism and … support for Israel’s security”.

“We have the challenge of Iran’s aggression and terrorism, and I’d like to talk to you about how we can work together to counter these things for the benefit of peace,” Netanyahu told Johnson, according to an official Israeli transcript.

Like other European partners to the Iran nuclear deal, Britain was worried by the U.S. withdrawal. Johnson, while openly sympathetic to Israel, wants to preserve a vision of Palestinian statehood that has eroded under Netanyahu’s tenure.

Netanyahu – who has doubled as defense minister for the past 10 months, a period of stepped-up Israeli operations against Iranian targets in the region – brought his air force chief and top military mission planner for the London meeting with Esper.

Israeli Foreign Minister Israel Katz told Ynet TV that Netanyahu and Esper would discuss “everything that happens in the space between Syria, Lebanon, Iraq,” an allusion to the often clandestine Israeli military campaign.

(Writing by Dan Williams; Editing by Jeffrey Heller, Toby Chopra and Peter Graff)

North Korea tells United Nations to cut international aid staff: letter

FILE PHOTO: North Korean Foreign Minister Ri Yong Ho attends a meeting with China's President Xi Jinping at the Great Hall of the People in Beijing, China December 7, 2018. Fred Dufour/Pool via REUTERS/File Photo

By Michelle Nichols

UNITED NATIONS (Reuters) – North Korea has told the United Nations to cut the number of international staff it deploys in the country because the world body’s programs have failed “due to the politicization of U.N. assistance by hostile forces,” according to a letter seen by Reuters on Wednesday.

The United Nations estimates 10.3 million people – almost half the country’s population – are in need and some 41 percent of North Koreans are undernourished, while Pyongyang said in February it was facing a food shortfall this year and had to halve rations, blaming drought, floods and sanctions.

“U.N. supported programs failed to bring the results as desired due to the politicization of U.N. assistance by hostile forces,” Kim Chang Min, secretary-general for North Korea’s National Coordinating Committee for the United Nations, wrote to the top U.N. official posted in the country.

In the Aug. 21 letter, Kim said the number of international staff should be cut by the end of the year.

North Korea wants the number of international staff with the U.N. Development Programme to be cut to one or two from six, the World Health Organization to four from six and the U.N. Children’s Fund (UNICEF) to cut its 13 staff by one or two.

Kim said the number of international staff with the World Food Programme should be reduced “according to the amount of food aid to be provided” once the agency and North Korean agree how to implement a plan for 2019 to 2021.

There was also no need for a humanitarian aid coordination officer, Kim wrote, adding that U.N. aid officials could instead “visit as and when required.”

The United Nations did not immediately respond to a request for comment.

“Historically there’s been a critical lack of international expertise and oversight and capacity to monitor the use of the assistance that is provided,” said a U.N. diplomat, speaking on condition of anonymity.

“We’re deeply surprised by this turn of events in part because this is when the needs have grown and the U.N. has been trying to mobilize support to scale up assistance in country,” the diplomat said.

The move comes amid stalled talks between the United States and North Korea aimed at dismantling Pyongyang’s nuclear and missile programs. The U.N. Security Council has unanimously ratcheted up sanctions on North Korea since 2006 in a bid to choke funding for those programs.

“The North Korean government’s decisions are only hurting the North Korean people,” said a second U.N. diplomat, speaking on condition of anonymity.

“This is coming at a time where both Russia and China are pushing a false narrative that sanctions are causing the humanitarian problems in North Korea and the only way to solve that is to give North Korea sanctions relief,” the diplomat said.

Russia’s U.N. ambassador, Vassily Nebenzia, told reporters on Tuesday that unilateral sanctions imposed on North Korea by other countries and some strict interpretations of U.N. sanctions were hindering humanitarian work.

“The population of North Korea should not suffer under those sanctions that have been imposed illegitimately,” he said.

(Reporting by Michelle Nichols; Editing by Peter Cooney)

U.S. warship sails in disputed South China Sea amid trade tensions

FILE PHOTO: The U.S. Navy Arleigh Burke-class guided-missile destroyer USS Wayne E. Meyer sails alongside South Korean multirole guided-missile destroyer Wang Geon during a bilateral exercise in the western Pacific Ocean April 25, 2017. U.S. Navy/Mass Communication Specialist 3rd Class Kelsey L. Adams/Handout via REUTERS

By Idrees Ali

WASHINGTON (Reuters) – A U.S. Navy destroyer sailed near islands claimed by China in the South China Sea on Wednesday, the U.S. military said, a move likely to anger Beijing at a time of rising tensions between the world’s two largest economies.

The busy waterway is one of a growing number of flashpoints in the U.S.-Chinese relationship, which include an escalating trade war, American sanctions on China’s military and U.S. relations with Taiwan. Reuters reported on Tuesday that China had denied a request for a U.S. Navy warship to visit the Chinese port city of Qingdao.

The U.S. Navy vessel Wayne E. Meyer, an Arleigh Burke-class guided-missile destroyer, carried out the operation, traveling within 12 nautical miles (14 miles/22 km) of Fiery Cross and Mischief Reefs, Commander Reann Mommsen, a spokeswoman for the Japan-based U.S. Navy’s Seventh Fleet, told Reuters.

The operation was conducted “to challenge excessive maritime claims and preserve access to the waterways as governed by international law,” Mommsen added.

The U.S. military operation comes amid an increasingly bitter trade war between China and the United States that sharply escalated on Friday, with both sides leveling more tariffs on each other’s exports.

The U.S. military has a long-standing position that its operations are carried out worldwide, including areas claimed by allies, and are separate from political considerations.

China and the United States have traded barbs in the past over what Washington has said is Beijing’s militarization of the South China Sea by building military installations on artificial islands and reefs.

China’s claims in the South China Sea, through which about $5 trillion in ship-borne trade passes each year, are contested by Brunei, Malaysia, the Philippines, Taiwan and Vietnam.

China has called its construction as necessary for self-defense and has said the United States is responsible for ratcheting up tensions by sending warships and military planes close to islands that Beijing claims.

China’s 2019 defense spending will rise 7.5 percent from 2018, according to a budget report. Its military build-up has raised concerns among neighbors and Western allies, particularly with China becoming more assertive in territorial disputes in the East and South China Seas and over Taiwan, a self-ruled territory Beijing claims as its own.

The U.S. military last year put countering China, along with Russia, at the center of a new national defense strategy, shifting priorities after more than a decade and a half of focusing on the fight against Islamist militants.

In addition, Vice President Mike Pence, in a visit to Iceland next week, will have talks about “incursions” into the Arctic Circle by China and Russia, a senior Trump administration official said on Wednesday.

(Reporting by Idrees Ali; Editing by Chizu Nomiyama and Will Dunham)

Iran says top waterways won’t be as safe if its oil exports cut to zero

FILE PHOTO: Iranian President Hassan Rouhani speaks during the cabinet meeting in Tehran, Iran, August 14, 2019. Official President website/Handout via REUTERS

GENEVA (Reuters) – If Iran’s oil exports are cut to zero, international waterways will not have the same security as before, its president said on Wednesday, cautioning Washington against upping pressure on Tehran in an angry confrontation between the longtime foes.

The comment by President Hassan Rouhani coincided with a remark by Iranian Foreign Minister Mohammad Javad Zarif that Tehran might act “unpredictably” in response to “unpredictable” U.S. policies under President Donald Trump.

“World powers know that in the case that oil is completely sanctioned and Iran’s oil exports are brought down to zero, international waterways can’t have the same security as before,” Rouhani said while meeting Supreme Leader Ayatollah Ali Khamenei, according to Khamenei’s official website.

“So unilateral pressure against Iran can’t be to their advantage and won’t guarantee their security in the region and the world.”

Tensions between Tehran and Washington have risen since Trump’s administration last year quit an international deal to curb Iran’s nuclear ambitions and began to ratchet up sanctions. Iranian officials have denounced the new penalties as “economic warfare”.

In a speech at the Stockholm International Peace Research Institute, Zarif appeared to echo Rouhani’s tone.

“Mutual unpredictability will lead to chaos. President Trump cannot expect to be unpredictable and expect others to be predictable. Unpredictability will lead to mutual unpredictability and unpredictability is chaotic,” Zarif said.

Global commodity trading has been rocked in recent months after a series of attacks on international merchant vessels, which the United States has blamed on Iran, and the seizure of a British tanker. Tehran has denied the accusations.

Washington, which has by far the strongest Western naval contingent in the Gulf, has been calling for its allies to join it in an operation to guard shipping in the Strait of Hormuz, a vital gateway for the world’s oil industry.

So far, Britain, Australia and Bahrain have joined the U.S.-led security mission to protect merchant vessels traveling through key Middle East waterways.

Reiterating Iran’s chilly response to the security mission, Iranian Rear Admiral Ali Fadavi, a deputy commander of the elite Revolutionary Guards, said no one can secure the Gulf other than Iran and countries of the region, according to the semi-official Fars news agency.

“Securing the Persian Gulf is the responsibility of Iran and the countries of the region,” Fadavi said. “Other than us, no one can secure the Persian Gulf.”

(Reporting By Babak Dehghanpisheh; additional reporting by Simon Johnson in Stockholm and Tuqa Khalid in Dubai, Editing by William Maclean)

U.S. removed almost 2.7 million barrels daily of Iranian oil from market: Pompeo

FILE PHOTO: U.S. Secretary of State Mike Pompeo reacts as he talks to the media after his meeting with Lebanon's Prime Minister Saad al-Hariri at the State Department in Washington, U.S., August 15, 2019. REUTERS/Yuri Gripas

WASHINGTON (Reuters) – The United States has removed nearly 2.7 million barrels of Iranian oil from global markets daily as a result of Washington’s decision to reimpose sanctions on all purchases of Iran’s crude, U.S. Secretary of State Mike Pompeo said on Tuesday.

In an interview with MSNBC, Pompeo said the U.S. government was confident it could continue with its strategy.

The United States re-imposed sanctions on Iran in November after pulling out of a 2015 nuclear accord between Tehran and six world powers. In May, Washington ended sanction waivers given to importers of Iranian oil, aiming to cut Tehran’s exports to zero.

Iran exported about 100,000 bpd of crude in July, according to an industry source who tracks such flows and data from Refinitiv Eikon. If condensate, a light oil, is included, shipments were about 120,000 bpd a day.

“We have managed to take almost 2.7 million barrels of crude oil off of the market, denying Iran the wealth to create their terror campaign around the world, and we have managed to keep the oil markets fully supplied,” Pompeo said.

“I am confident we can continue to do that,” he added.

The Organization of the Petroleum Exporting Countries (OPEC), Russia and other producers have been cutting 1.2 million bpd since Jan. 1 to reduce global supply. OPEC in July renewed the pact until March 2020 to avoid a build-up of inventories as worldwide demand is seen weakening.

Despite OPEC’s actions along with U.S. sanctions on Iran and Venezuela, Brent crude international oil prices <LCOc1> have been relatively weak, falling on Tuesday to $59 a barrel from a 2019 high of $75, pressured by concerns about slowing demand.

The exact level of Iranian exports has become harder to assess since U.S. sanctions returned in November, meaning estimates fall into a range rather than a definitive figure.

 

(Reporting by Humeyra Pamuk and Doina Chiacu in Washington; Editing by Paul Simao)

War with Iran is the mother of all wars: Iran president

Iranian President Hassan Rouhani is seen during a meeting with Iran's Foreign Minister Mohammad Javad Zarif and with deputies and Senior directors of the Ministry of Foreign Affairs in Tehran, Iran, August 6, 2019. Official President website/Handout via REUTERS

GENEVA (Reuters) – War with Iran is the mother of all wars, Iranian President Hassan Rouhani said on Tuesday in a speech broadcast live on state TV, warning once again that shipping might not be safe in the Strait of Hormuz oil waterway.

Tensions have risen between Iran and the West since last year when the United States pulled out of an international agreement which curbed the Islamic Republic’s nuclear program in return for an easing of economic sanctions on Iran.

“Peace with Iran is the mother of all peace, war with Iran is the mother of all wars,” Rouhani said at the Foreign Ministry in a speech which also praised Foreign Minister Mohammad Javad Zarif after the United States imposed sanctions on him on July 31.

If the United States wants to have negotiations with Iran then it must lift all sanctions, Rouhani said, noting that Iran must be allowed to export oil.

Fuelling fears of a Middle East war with global repercussions, the Guards seized British tanker Stena Impero near the Strait of Hormuz in July for alleged marine violations, two weeks after British forces captured an Iranian oil tanker near Gibraltar accused of violating sanctions on Syria.

“A strait for a strait. It can’t be that the Strait of Hormuz is free for you and the Strait of Gibraltar is not free for us,” Rouhani said.

Approximately one-fifth of the world’s oil traffic passes through the strategic Strait of Hormuz.

The Guards seized an Iraqi oil tanker in the Gulf on Wednesday which they said was smuggling fuel and detained seven crewmen, Iran’s state media reported.

(Story corrects date of Iraqi ship’s seizure)

(Reporting by Babak Dehghanpisheh; Editing by Alison Williams)

Fire and fury: With missile launch, North Korea shows ire at neighbor

A view of North Korea's missile launch on Thursday, in this undated picture released by North Korea's Central News Agency (KCNA) on July 26, 2019. KCNA/via REUTERS

By Josh Smith and Hyonhee Shin

SEOUL (Reuters) – North Korean leader Kim Jong Un’s blistering criticism of South Korea as he oversaw his latest missile launch this week sparked new questions over the South’s role in mediating a nuclear deal between the North and the United States, analysts said.

South Korean President Moon Jae-in has been one of the most vocal proponents of engagement with the North, using last year’s Winter Olympics to host its delegations and then meeting Kim at summits filled with feel-good imagery, smiles, and hand-holding.

But Moon has been unable to convince Washington to ease sanctions and allow economic cooperation between the neighbors, nor has he persuaded Kim to take major steps toward giving up his nuclear weapons.

On Friday, North Korea called the previous day’s missile launches a warning to South Korean “warmongers” to stop importing weapons and holding joint military drills, with Kim explicitly urging Moon not to ignore them.

Kim may be impatient with what he sees as South Korea overpromising and underdelivering, said Jenny Town, a managing editor at 38 North, a U.S.-based project that studies North Korea.

“The North Koreans have made several statements challenging Moon to move forward, but obviously the situation has left Seoul unable to do so,” she said.

For his part, Moon said there had been “a lot of progress so far in inter-Korean relations and North Korea-U.S. relations, but we still have a long way to go.”

“I think the biggest challenge is national unity,” he added, in comments to a group of Buddhist leaders in Seoul.

North Korea’s growing frustration with its neighbor culminated in the missile tests as a protest against the South’s acquisition of new weapons, such as U.S. F-35 stealth fighters, and its participation in military drills with the United States.

Kim’s comments showed how skeptical North Korea has become regarding the South’s usefulness in talks with the United States, said Shin Beom-chul of the Asan Institute for Policy Studies in Seoul.

“To them, the South Korean government is only a nuisance,” he said. “So the message is either ‘Persuade the United States,’ or ‘Stay out of it.'”

Overseeing Thursday’s launches, Kim Jong Un said the new missiles had to be developed to neutralize the weapons being acquired by South Korea and turn them into “scrap iron”.

South Korea’s acquisition of American F-35 stealth fighter jets, the first of which arrived in March, would force its neighbor to develop and test “special armaments” to destroy the aircraft, the North had warned in mid-July.

While Moon has faced some domestic concern that national security could be affected by his North Korean pacts, from a no-fly zone to fewer guard posts and landmines along the heavily fortified border, he has also pushed ahead with plans to modernize and invest in the South’s already large military.

In January the defense ministry unveiled a plan to boost military spending for the next five years by an additional 270.7 trillion won ($228 billion).

Still, some observers believe Kim Jong Un is leaving space for engagement by focusing on South Korea’s military.

“The state media report shows the North was still willing to maintain inter-Korean ties, as they mostly targeted the military forces, not the whole government,” said Kim Dong-yup, a professor at Kyungnam University’s Far East Institute in Seoul.

An official at Moon’s office said it would not comment on the state media report but the government remained committed to working to revive momentum for nuclear talks.

Poor relations have also prompted a show of reluctance by Pyongyang in accepting 50,000 tons of rice South Korea offered as food aid to its impoverished neighbor.

A South Korean official said the government discussed the plan with the World Food Programme, but Pyongyang had recently showed a “negative” attitude, citing the joint military drills.

Attempts to discuss two South Korean sailors detained by the North have also gone unanswered, the official added.

(Reporting by Josh Smith and Hyonhee Shin; Additional reporting by Joyce Lee; Editing by Clarence Fernandez)

Turkey will retaliate if U.S. imposes sanctions over S-400s: minister

FILE PHOTO: First parts of a Russian S-400 missile defense system are unloaded from a Russian plane at Murted Airport, known as Akinci Air Base, near Ankara, Turkey, July 12, 2019. Turkish Military/Turkish Defence Ministry/Handout via REUTERS/File Photo

By Ece Toksabay and Tuvan Gumrukcu

ANKARA (Reuters) – Turkey would retaliate against what it called an unacceptable threat of U.S. sanctions over Ankara’s purchase of Russian S-400 missile defenses, its foreign minister said on Monday, adding he thinks President Donald Trump wants to avoid such measures.

Turkey began receiving deliveries of the surface-to-air S-400 systems earlier this month, prompting the United States to begin removing the NATO ally from its F-35 stealth fighter program over security concerns.

Washington says it is concerned that S-400 software will compromise its F-35s to the benefit of Russia. While several Republican and Democratic U.S. lawmakers have pressed for sanctions, Trump has equivocated in recent days.

“If the United States portrays an adversarial attitude towards us, we will take retaliatory measures, as we’ve told them. This is not a threat or a bluff,” Foreign Minister Mevlut Cavusoglu said in an interview with broadcaster TGRT Haber.

“We are not a country that will bow down to those who show animosity towards Turkey,” he said, reiterating a threat of retaliation that Turkey made last month.

Cavusoglu added that he did not expect the U.S. administration to take such action.

“Trump does not want to impose sanctions on Turkey and he frequently says that his administration and the previous U.S. administration is also responsible for Turkey not being able to buy Patriot systems. This is true,” Cavusoglu said.

The United States announced last week it was beginning the process of removing Turkey from the program for the F-35 stealth jets, the most advanced aircraft in the U.S. arsenal, which is used by the North Atlantic Treaty Organization and other partner countries.

Turkey, like some other NATO partners, was part of the manufacturing supply chain for the aircraft, producing some 900 parts and Turkish defense companies are set to lose work worth billions of dollars.

A U.S. official said it would cost some $500 million to $600 million to shift F-35 manufacturing from Turkey.

RUSSIAN ALTERNATIVE

The delivery of S-400 components is ongoing, with 14 shipments of related equipment having landed in Turkey over the last nine days. Deliveries are set to continue through April 2020.

Separately, Sergei Chemezov, head of Russia’s Rostec state conglomerate, said that Russia and Turkey were in talks about the possibility of jointly manufacturing some components of the S-400 system in Turkey.

“Moscow and Ankara are holding consultations in the area of the licensed production of the S-400 air defense system component parts,” Turkey’s state-run Anadolu news agency quoted Chemezov as saying.

“Besides, Turkey is interested in the latest Russian combat modules, air defense systems of various ranges, as well as anti-tank systems. Negotiations are underway for Russia to help the Republic of Turkey in creating its national air defense and long-range missile defense systems,” he said.

Chemezov added that Moscow was ready for various formats of technological cooperation, including in such high-tech areas as the aerospace industry, helicopter construction, and energy.

(Writing by Ece Toksabay; Editing by Jonathan Spicer and Frances Kerry)

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)

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)