With reports that the European Union is close to establishing its trade
vehicle for facilitating trade with Iran, the Trump Administration has
issued a statement warning them not to defy the US sanctions. in any way.
The US reimposed sanctions on Iran after withdrawing from the P5+1
nuclear deal. EU nations did not withdraw from the deal, and companies
are still allowed to trade with Iran. This, however, is difficult
because US sanctions are scaring most banks away.
The EU solution is a clearing house for the trades, which allow
companies to pay for Iranian goods, and Iran to pay EU companies for
services, without any money crossing borders, cutting the banks out of
it.
US officials are threatening stiff fines and penalties if the plan goes
forward. Sen. Tom Cotton (R-AR) says the choice is between doing
business with Iran or the US. The EU, however, is betting that the US
cannot afford to simply cut off Europe entirely over Iran.
Trump Warns Europeans Not to Defy US Sanctions Against Iran
Threatens stiff fines and penalties for circumventing sanctions
Jason Ditz is Senior Editor for Antiwar.com. He has 20 years of experience in foreign policy research and his work has appeared in The American Conservative, Responsible Statecraft, Forbes, Toronto Star, Minneapolis Star-Tribune, Providence Journal, Washington Times, and the Detroit Free Press.
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