Iran Deal Remains Possible, U.S., U.K., France, Germany Say

(Bloomberg) --

U.S. President Joe Biden and the leaders of Germany, France, and the U.K. said they still see a chance to revive a deal with Iran over its nuclear program, but that Tehran must change course before any relief on sanctions.

“We are convinced that it remains possible to quickly reach and implement an understanding on return to full compliance to ensure for the long term that Iran’s nuclear program is exclusively for peaceful purposes, and to provide sanctions lifting with long-lasting implications for Iran’s economic growth,” the leaders said in a joint statement after meeting during the Group of 20 summit in Rome. “This will only be possible if Iran changes course.”

The leaders also said Iran’s production of highly enriched uranium and decreased cooperation with international oversight was “alarming.” They appealed to Iran’s news president, Ebrahim Raisi, to seize the opportunity but offered no details on a timetable.

Before the meeting, Biden posed for photographs with U.K. Prime Minister Boris Johnson, French President Emmanuel Macron and outgoing German Chancellor Angela Merkel.

Asked when he wanted the talks to resume, Biden said, “They’re scheduled to resume.”

Iran said earlier in the week that it had agreed with the European Union to restart talks to revive the 2015 deal that limited the Islamic Republic’s nuclear work in exchange for relief from economic sanctions that had cut off oil exports and hobbled its economy. A precise date for negotiations to resume has not been announced.

The Biden administration has said it wants to negotiate a return to and expansion of that agreement, which was ratified under the Obama administration. 

Former President Donald Trump pulled out of the accord in 2018, as his administration argued the pact emboldened Iranian activities that destabilize the Middle East and didn’t adequately address Iran’s ballistic missile program. Following Trump’s withdrawal, Iran began violating the deal’s restrictions and said it would no longer observe limits on the amount of nuclear material it produces.  

Restating the talks has thus far proved elusive -- particularly after the June election of hard-line President Ebrahim Raisi. The White House has resisted undoing Trump-era sanctions that have frozen billions of dollars of payments for oil imports, a key demand from Tehran.

Iranian officials have also said they want a guarantee future U.S. administrations won’t also exit a pact -- though that demand is likely impossible for Biden, who cannot legally force future administrations to abide by the deal. Codifying the agreement in Congress is exceedingly unlikely given strong Republican opposition.

White House national security adviser Jake Sullivan told reporters Thursday it was “not entirely clear” if Iran is prepared to return to talks.

“We have heard positive signals that they are, but I think we have to wait and see when and whether they actually show up at the negotiating table,” Sullivan said.

Still, oil futures declined Wednesday after Iran’s public pronouncement that it’s ready to resume, in a signal that traders anticipated Iranian crude could re-enter markets.

The meeting in Rome is an opportunity for Biden to “to touch base on where things stand right now,” Sullivan said.

Merkel invited finance minister Olaf Scholz -- her likely successor -- to join the talks. Scholz is working to form a coalition government with hopes of becoming Germany’s next chancellor in early December.

Ahead of Saturday’s meeting, Johnson discussed Iran policy by phone with Russian President Vladimir Putin, who isn’t attending the summit in Rome. Russia was one of the key negotiators of the original Iran deal.

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