Iran Further Breaches JCPOA; US Threatens Additional Sanctions

Iran surpassed the enriched uranium limit that was agreed to as part of the Joint Comprehensive Plan of Action, the country announced July 7, sparking concern from the European Union and threats of additional sanctions by the U.S.

The announcement, which came from Iran’s Atomic Energy Organization, according to a July 8 Reuters report, was made less than a month after Iran said it intended to reduce its commitments under the JCPOA. Iran said other JCPOA parties were not abiding by their own commitments, calling on the EU to make stronger efforts to mitigate the effects of U.S. sanctions, which were imposed after the U.S. withdrew from the deal in 2018 (see 1906190042).

In a July 7 statement on Twitter, Iran’s Foreign Minister, Javad Zarif, confirmed Iran would be taking a “second round of remedial steps” and said the EU should support Iran’s decision. “We reserve the right to continue to exercise legal remedies within JCPOA to protect our interests in the face of US #EconomicTerrorism,” Zarif said. The move increases Iran’s uranium enrichment level above the 3.67% limit stated in the JCPOA, according to a July 8 report from Iran’s Fars News Agency.

Shortly after the announcement, U.S. Secretary of State Mike Pompeo threatened additional sanctions on Iran. “Iran’s latest expansion of its nuclear program will lead to further isolation and sanctions,” Pompeo said in a tweet. “Nations should restore the longstanding standard of no enrichment for Iran’s nuclear program.”

The United Kingdom’s Foreign and Commonwealth Office said it is “coordinating” with other JCPOA parties to determine next steps and said Iran has “broken the terms” of the JCPOA. “While the UK remains fully committed to the deal, Iran must immediately stop and reverse all activities inconsistent with its obligations,” the U.K. said.

The German Foreign Office said it was “extremely concerned” by Iran’s announcement. “We had called upon Iran not to take further measures that undermine the nuclear deal,” the office said on Twitter. “We strongly urge Iran to stop and reverse all activities inconsistent with its commitments under the JCPoA.”

If the JCPOA’s European parties withdraw from the agreement, EU snapback sanctions would immediately take effect, which would reimpose all sanctions on Iran that were in place before the JCPOA. That would also likely lead to another set of Iranian sanctions from the U.S., which has led a maximum-pressure campaign on Iran after it left the agreement (see 1907030048).

Iran may plan to increase its enriched uranium levels to 20 percent as it continues to reduce its JCPOA commitments, Iran’s Fars News Agency said. Iran’s Atomic Energy Organization said the level is now at 4.5%. "Twenty percent is not needed now, but if we want we will produce it. Now that we have gone past the 3.67% enrichment, there won't be any problem with this action," the spokesman said, according to the report.

Iran Deputy Foreign Minister Seyed Abbas Araghchi said the EU’s efforts to mitigate U.S. sanctions were insufficient, including the creation of Instex. Instex, the payment mechanism created by European leaders to continue trade with the country despite U.S. sanctions, was officially activated June 28 (see 1907010057). But the payment system is viewed by some as mostly symbolic and a way to appease Iran without allowing for major trade (see 1907030047). The June 28 announcement came at the conclusion of the 12th meeting of the Joint Commission on JCPOA in Vienna. “It was a step forward,” Araghchi said of the meeting, according to the report, “but it is still not enough and not meeting Iran’s expectations.”