Iran's supreme leader chastised President Donald Trump on Wednesday over his decision to pull America out of the 2015 nuclear deal, while lawmakers lit a paper US flag on fire inside parliament, shouting, "Death to America!". Still, Iranian president Hassan Rouhani warned that the country may restart its nuclear program if no progress on the negotiations are made. "(But a number of factors) strongly advise against attempts to chase oil above $80 in a straight line". "If they do there will be very severe consequences", he told reporters.
He declared he was making the world safer, but he also deepened his isolation on the world stage and revived doubts about American credibility with a rationale that contradicted the analyses of American and foreign intelligence sources.
Rouhani, considered a moderate by Iranian standards, joined in the criticism of the U.S., and said, "The U.S.is a country that has never adhered to its commitments". "But they'll negotiate, or something will happen". "What I think the Trump administration is doing is putting the pieces into place to have a major confrontation with Iran". When the sanctions - secondary sanctions applicable to foreign companies and entities - are fully in place, the United States will expect India to go off Iranian oil at the threat of punitive actions that remain undefined, but could include being shut out of the USA banking system.
Major companies in the USA and Europe could be hurt.
Any new USA sanctions will also raise the cost of trade for Iran and are expected to further deter Western companies from investing, giving hardliners an excuse to cement their grip on power by making Rouhani a scapegoat for hardship.
Mr Mnuchin said that he didn't expect oil prices to rise sharply, forecasting other producers will step up production. Proponents of the deal have said those time limits were meant to encourage more discussion with Iran in the future that could eventually address other concerns.
Senior European figures insisted on Wednesday that the deal was not dead, despite the USA withdrawing from it. Treasury said that at the end of those periods, the sanctions will be in "full effect".
As we wrote in this space yesterday upon learning of Trump's decision: "The Iran nuclear deal, another example of Obama's handiwork, was dangerously advantageous to Iran, freeing it from economic sanctions in return for nearly nothing".
Prime Minister Justin Trudeau has chose to ally himself with the likes of European leaders Emmanuel Macron and Angela Merkel over our allies the United States and Israel when it comes to the troubled Iran deal.
Rouhani underscored that what the United States president did was a wrong move.
"It might make Iran change its path", he said hopefully.
If the deal collapses entirely, Iran would be free to resume prohibited enrichment activities.
Iran has denied ever pursuing nuclear arms. Yet the Europeans realized he was unpersuaded.
UK Foreign Secretary Boris Johnson told parliament on Wednesday that, given Trump's hasty and unilateral decision to renege on the nuclear deal, the onus was on the U.S. to provide and describe, in detail, a suitable alternative solution to manage the countries' "shared concerns". In Tehran, Rouhani sought to calm nerves, smiling as he appeared at a petroleum expo.
The French president, in turn, expressed regret over Trump's decision to pull out of the JCPOA, saying European countries have, in a collective reaction, expressed their objection to the decision.