European powers responded with caution to Tehran's decision to abandon parts of the 2015 nuclear deal. In the US, President Trump imposed fresh sanctions on Iran's crucial metal exports, but he also hinted at a deal.
Iran also warned that it would begin high level uranium enrichment within 60 days if signatory states did not protect it from US sanctions.
France, Britain, Germany, Russia and China are all signatories to the 2015 nuclear deal from which the US withdrew last year. All have said they wish to keep the accord alive but renewed sanctions imposed by Washington have had a severe effect on Iran's economy.
Trump imposes more sanctions, but with a twist
On Wednesday, Donald Trump imposed fresh sanctions of Iran's revenue from exporting industrial metals. The move affects Iran's iron, steel, aluminium, and copper sectors. The earnings from metal industry are Tehran's biggest source of export revenue after selling oil.
Trump said that Iran "can expect further actions unless it fundamentally alters its conduct."
However, Trump also said he was willing to negotiate.
"I look forward to someday meeting with the leaders of Iran in order to work out an agreement and, very importantly, taking steps to give Iran the future it deserves," he said.
US' Iran envoy warns against attack on US forces
Separatelly, a US representative slammed the Iran announcement as "an attempt to hold the world hostage."
Talking to reporters on the phone, US Special Envoy for Iran, Brian Hook, said the US will continue putting maximum pressure on Tehran until it chages its behavior. He said Iran could change its foreign policy, but did not provide specifics. He also said Iran had not shown signs of violating the nuclear deal, but added that US sanctions were producing "positive impacts."
Hook warned the Islamic Republic against targeting US forces in the Middle East, after the US deployed an aircraft carrier strike group to the area.
"Any attack will be met with force," he said.
Germany determined to save the deal
German Defense Minister Ursula von der Leyen said Europe had to "do everything" to maintain dialogue with Iran. "Stable relations" were paramount, she told DW, calling for cooperation with Iran to work "within the framework of the deal."
Social Democrat (SPD) lawmaker and foreign policy expert Rolf Mützenich told DW that "even though the hardliners in Tehran weren't able to push through their demands to ignore the treaty, the latest move has a destabilizing effect on the region. Together with other signatories on the UN Security Council, Germany must do everything it can to rescue parts of the deal. Even if that means a US veto."
Europe has a "strong interest" in saving the deal, Green party parliamentarian Omid Nouripoor told DW. "It could distance itself from US policy that dictates Saudi Arabia is our most important ally in the Middle East.
Bijan Djir-Sarai, the head of the Bundestag's German-Iranian parliamentary group and the foreign policy spokesperson for the opposition FDP, said Tehran's step would spell the end of the nuclear deal.
"The Europeans have done everything to keep this agreement alive, but at the end of the day, Iran closed the door," he told DW.
France and EU make an 'assessment'
The announcement was met with a measured response from France.
French Defense Minister Florence Parly said she wanted to keep the nuclear deal intact, but stressed that Iran's scaling back of commitments might mean sanctions would have to be re-imposed.
"These are some of the things that will be examined," she told France's BFM TV news channel.
"If these commitments are not respected, naturally this question would be asked," she added.
Iran nuclear deal — treaty under threat
A year after Donald Trump pulled the US from the international nuclear accord with Iran, the Middle East nation announced it would no longer adhere to some "voluntary commitments" in the accord.
Image: picture-alliance/epa/D. Calma
The deal breaker
President Donald Trump announced on May 8, 2018 that he was pulling the United States out of the 2015 Iran nuclear deal, arguing that the international accord was not in America's "national interest." The decision threw a cloud of uncertainty over the future of the nuclear accord and raised tensions with US allies in Europe.
Image: Reuters/J. Ernst
Slap in the face
Britain, France and Germany lobbied the Trump administration and Congress to remain in the nuclear accord, arguing that the deal was working and a US violation without a follow up plan would be destabilizing. In European capitals, the Trump administration's withdrawal was viewed as a slap in the face of allies.
Image: Reuters/K. Lamarque
Iran scrap 'voluntary commitments'
A year to the day after Trump's announcement, Iran informed the other signatories of the accord that they would no longer adhere to certain "voluntary commitments." Iranian President Hassan Rouhani said the signatory nations had 60 days to implement promises to protect Iran's oil and banking sectors or Iran would resume the enrichment of uranium.
The decision came after the United States deployed an aircraft, the USS Lincoln, along with a bomber task force to the Middle East. Washington said the deployment was intended as a "clear unmistakable message." Iran said it took action because the European Union and others "did not have the power to resist US pressure."
Image: AP
A triumph of diplomacy
The Joint Comprehensive Plan of Action (JCPOA), better known as the Iran nuclear deal, was signed in 2015 by United States, China, Russia, France, Germany and Britain (P5+1) and Iran following years of negotiations. Under the international agreement, Iran agreed to dismantle its nuclear program and be subject to monitoring in exchange for the lifting of international nuclear related sanctions.
Image: picture alliance / landov
Compliance and verification
The JCPOA includes a robust monitoring, verification and inspection regime carried out by International Atomic Energy Agency (IAEA). The UN watch dog has verified Iran's compliance with the deal in 12 quarterly reports. The JCPOA allows Iran to pursue a peaceful nuclear program for commercial, medical and industrial purposes in line with international non-proliferation standards.
Image: picture-alliance/dpa/R. Schlager
Obama's achievement
The Iran nuclear deal was President Barack Obama's signature foreign policy achievement. Seeking to undo nearly every Obama administration legacy, Trump came into office calling it the "worst deal ever." The Trump administration argues the nuclear deal doesn't address other unrelated issues such as Iran's ballistic missiles, regional influence, support for "terrorist" groups and human rights.
Image: Reuters/Y. Gripas
Iranians approved
The nuclear deal and lifting of punishing nuclear related international sanctions created optimism in Iran after years of economic isolation. However, even before Trump pulled the US out of the deal, Tehran blamed the US for holding back international investment and not fulfilling its end of the bargain due to the uncertainty created by Trump's threats.
Image: picture alliance/AA/F. Bahrami
The opponents
After eight years with Barack Obama, Israeli Prime Minister Benjamin Netanyahu found the US president he wanted in Donald Trump. The Israeli leader repeatedly slammed the deal despite his own military and intelligence chiefs' assessment the that JCPOA, while not perfect, was working and should be maintained. Saudi Arabia and the UAE are the other main opponents of the nuclear deal.
Image: Reuters/R. Zvulun
Who's left?
The EU-3 (Britain, France, Germany) have scrambled to ensure that Iran receives the economic benefits it was promised in order to avoid Tehran pulling out of the deal. As EU businesses face retaliation from the US for doing business with Iran, many are opting to avoid Iran. This would likely be a present to Chinese and Russian businesses.
Image: picture-alliance/Photoshot
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A senior EU official said Brussels was still in an "assessment phase” to determine whether sanctions should be re-imposed. Any EU-wide action would need to be agreed by all member states.
After visiting Iran's neighbor Iraq, US Secretary of State Mike Pompeo arrived in London on a diplomatic visit that was expected to cover Iran.
Russia criticizes US 'pressure'
The Kremlin said there were no alternatives to the Iran nuclear deal at present, and denounced "unreasonable pressure" that caused Tehran to suspend some of its commitments.
"Putin has repeatedly spoken about the consequences of ill-considered steps towards Iran, meaning the decision taken by Washington" to reimpose sanctions, Kremlin spokesman Dmitry Peskov said.
Russia would work with European countries to maintain the "continued viability" of the deal, Peskov said. He added that it was too early to discuss the possibility of Moscow joining sanctions against Tehran.
Russian Foriegn Minister Sergei Lavrov said European signatories should fulfil their obligations under the pact.
China calls for restraint, not sanctions
Beijing said the nuclear pact would need to be upheld and urged restraint.
"Maintaining and implementing the comprehensive agreement is the shared responsibility of all parties," said Chinese foreign ministry spokesman Geng Shuang at a regular press briefing.
"We call on all relevant parties to exercise restraint, strengthen dialogue, and avoid escalating tensions," he said, adding that China "resolutely opposes" unilateral US sanctions against Iran.
The first phase of US sanctions against Iran went back into effect in early August. Here's a breakdown of what the sanctions are targeting and how Iran has reacted to the measures.
Image: Reuters/TIMA/N. T. Yazdi
Sanctions signed off
US President Trump signed an executive order on August 5 aimed at piling financial pressure on Tehran to force a "comprehensive and lasting solution" to Iranian threats, including its development of missiles and regional "malign" activities. Trump warned that those who don't wind down their economic ties to Iran "risk severe consequences."
Image: Shealah Craighead
Where's the money?
The first phase, which took effect on August 7, targets the Islamic Republic's access to US banknotes, making transactions in a US-dollar dominated financial world difficult. A ban on Iran purchasing precious metals including gold further serves as an attempt to cut the country off from global markets.
Image: Getty Images/AFP/A. Kenare
Planes, cars and carpets
Phase one also hits key industries including the purchase of commercial planes, cars and carpets. Iranian imports of graphite, aluminum, steel, coal, gold and some software are also affected. German automaker Daimler called off the production and sale of Mercedes-Benz trucks in Iran indefinitely after the sanctions came into force.
Image: picture alliance/AP Photo
Fuel to the fire
A second phase of sanctions — which is due to take effect on November 5 and will block Iran's oil sales — is due to cause more damage. Several countries, however, including China, India and Turkey have indicated they are not willing to entirely cut their Iranian energy purchases.
Image: Reuters/R. Homavandi
'Psychological warfare'
Iranian President Hassan Rouhani said that the United States had launched "psychological warfare" against Iran to create division amongst its people. But he insisted that Iran still can rely on its allies China and Russia to keep its oil and banking sectors afloat. He has also demanded compensation for decades of American "intervention" in the Islamic Republic.
European Union foreign policy chief Federica Mogherini said the bloc is encouraging small and medium enterprises to increase their business with Iran. She said Tehran has been compliant with their nuclear-related commitments. The EU issued a "blocking statute" to protect European businesses from the impact of the sanctions.
Israeli Prime Minister Benjamin Netanyahu responded by reiterating a long-held position — that his country would not allow Iran to obtain nuclear weaponry.
"This morning, on my way here, I heard that Iran intends to pursue its nuclear programme," Netanyahu said in a speech to mark Israel's Memorial Day. "We will not allow Iran to achieve nuclear weaponry. We will continue to fight those who would kill us."
When sanctions threaten people's health
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What might happen next?
German Middle East expert Michael Lüders told German broadcaster Deutschlandfunk that it was difficult to predict how the situation might develop.
"There is no longer any kind of direct channel of communication between Washington and Tehran. There's no red telephone, so if there is a crisis it could erupt in a serious and violent way," Lüder said. "The European Union, which is a cosignatory of the nuclear treaty with Iran, is in a miserable situation. Neither Great Britain, France nor Germany — the three crucial signatory states — have so far clarified how they plan to act in this dispute, or signaled to the US that they are not happy with this policy of confrontation."
