No progress on the JCPOA
1. At this time, there seems to be no progress on the Joint Comprehensive Plan of Action (JCPOA) and UNSC Resolution 2231 (dated 20 July 2015), as Iran refuses to concede to any suggestion of alteration to the deal and continues to demand a lifting of sanctions. US national security advisor Jake Sullivan said that talks on the return by Iran and the U.S. to compliance with the 2015 Iran nuclear accord "are not going well."
(a) U.S. officials will meet with petrochem companies, other private firms & banks in UAE doing billions of dollars of trade with Iran. They will warn US has “visibility on transactions that are not compliant with sanctions...Those banks and firms face extreme risk if this continues.” This is the 1st sign of Washington’s willingness to increase the economic pressure on Tehran, as diplomatic efforts to restore the 2015 nuclear deal haves faltered.
(b) UAE is Iran’s 2nd largest trade partner. Just as key, American officials say the UAE a major conduit for oil, financial transactions, other Iran trade going elsewhere. Emirati firms make up “a very important portion of Iran’s continued commerce flows,” said one of Senior U.S. officials.
(c) I don’t understand why US Iran envoy Rob Malley thinks that the Russians or the Chinese will cooperate on further sanctions on Iran. During the past 6 months Iran has further escalated its nuclear program by taking extremely far-reaching steps that are incompatible with its commitments under the JCPOA. Some of these Iranian moves do not have plausible civilian use, said Germany’s UN Ambassador, Antje Leendertse.
(d) The U.S. Justice Department on 8 Dec 2021, announced the successful forfeiture of two large caches of Iran arms, including 171 surface-to-air missiles and 8 anti-tank missiles, as well as approximately 1.1 million barrels of Iranian petroleum products. Iran’s Islamic Revolutionary Guard Corps (IRGC), a designated foreign terrorist organization, orchestrated the arms shipments, which were destined for Houthi militants in Yemen. But IRCG’s influence operations extends far beyond Yemen, to Gaza, to Lebanon, to Iraq, to Syria and so on.
2. Meanwhile, the Americans in the State Department are trying to persuade the Israelis that the military option is not viable. IMO, it is a matter of time before these negotiations cease completely. A return to the maximum pressure campaign is not preferred but seems to be the only path remaining for Team Biden.
(a) As such, it is not a surprise that the Biden Administration is moving to tighten enforcement of sanctions against Iran, according to senior U.S. officials. Overall, I suspect, under Team Biden, the JCPOA is dead in the water.
(b) When Trump killed the JCPOA, he destroyed the constituency for a diplomatic settlement to the nuclear issue in Tehran. Biden maybe has a little window to fix it, but I am not sure how it would proceed.
3. This explains in part the role of SWIFT in Iran sanctions. The situation may get worse for Iran before it can improve. EU could also impose the same restrictions on other regimes in Asia or even on the UAE, if Iran continues with hostile actions against international shipping in the Gulf.