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Iran’s “intelligent” response?

August 3, 2017 | Expert Insights

A high-ranking official from Iran has promised that the country will respond intelligently to the sanctions imposed on it by the United States.

Deputy Foreign Minister Abbas Araqchi has also accused the US of trying to undermine the JCPOA nuclear deal.

Background

United States and Iran do not have any formal diplomatic relations or ties. The two nations share an acrimonious relationship. In 1953, the CIA played a key role in orchestrating a coup against Iran's democratically elected Prime Minister, Mohammad Mossadeq. Between 1979 and 1981, a group of Iranian students belonging to the Muslim Student Followers of the Imam's Line, took over the U.S. Embassy in Tehran. The 44 hostages were released after 444 days. In 2002, US President, George W Bush, described Iran as being part of the “axis of evil.”

Since 1969, the US has imposed crippling economic sanctions against Iran. The sanctions increased when the UN passed a resolution of fresh sanctions against Iran after the latter refused to suspend its uranium enrichment program in 2006.

On 2 April, 2015, the P5+1 and Iran reached a provisional agreement that sought to lift most of the sanctions in exchange for limits on Iran's nuclear programs extending for at least ten years. When the International Atomic Energy Agency (IAEA) certified that Iran had restricted its sensitive nuclear activities, the UN sanctions were lifted on January 16, 2016.

Iran is an oil-rich country and many companies have flocked to the region since the sanctions have been lifted.

Analysis

In July, the US Congress voted for a bill that would impose sanctions on Iran, Russia and the North Korea. In 2017, Iran successfully tested a space launch vehicle which could be converted into a ballistic missile, according to the US. US Ambassador to the UN Nikki Haley said, “The world must not allow Iran to act in defiance of the Security Council and its resolutions.” US also accused Iran of aiding terror groups such as Hezbollah. US President Donald Trump has been critical of the Iran nuclear deal. 

The threat of sanctions has not stopped companies from investing in Iran. In July, Iran signed a $4.8 billion deal with France's Total. It also struck an agreement with China's CNPC to develop its South Par gas field.

In an interview with state-tv, Araqchi said, “The main goal of America in approving these sanctions against Iran is to destroy the nuclear deal and we will show a very intelligent reaction to this action. We are definitely not going to act in a way that get us entangled in the politics of the American government and Trump. In our view, the nuclear deal has been violated and we will show an appropriate and proportional reaction to this issue.”

Assessment

Our assessment is that the US administration has given in to the neo-con, who have always opposed to the deal with Iran. The Iranians are fully aware of the struggles within the Trump administration and hence would react intelligently.