US sanctions sour ties with Europe

Commercial airlines in Iran left with aging and fragile jets

BRUSSELS/TEHERAN — The United States has intensified pressure on the Iranian government after slapping tough economic sanctions on Teheran, whilst widening a disagreement with the European Union over a landmark nuclear accord.

On Tuesday, Washington reinstated stringent sanctions, accusing Teheran of continuing to pursue nuclear weapons — a charge Iran denies.

Iran insists that there has been no violation of the 2015 pact with the US, China, the United Kingdom, France, Germany and Russia, which required it to curb its nuclear program in exchange for relief from economic sanctions.

The US withdrew from the accord in May.

In a tweet posted after the new sanctions were imposed, US President Donald Trump warned the international community that: “Anyone doing business with Iran will not be doing business with the United States.”

The action has exacerbated an already fragile relationship between Brussels and Washington, which is reeling from a tit-for-tat tariff trade war, a row over NATO spending and immigration.

“This is the US, or the US Treasury, extending its heavy hand across the world and telling people who they should and shouldn’t trade with,” said Doctor Michael Axworthy, a senior lecturer at the University of Exeter.

The sanctions target US dollar financial transactions, Iran’s automotive sector, and the purchase of commercial planes and metals, including gold. Even stronger sanctions targeting Iran’s oil sector and central bank are to be reimposed in early November.

On Tuesday, German car and truck maker Daimler AG said it was suspending its “very limited” activities in Iran and shuttering a representative office. European companies had known since Trump’s announcement in May that sanctions were coming back. British

Deliveries suspended

Airbus at that time suspended plane deliveries to Iran. Of 98 orders, only one A321 had been delivered, plus two A330s that were sold to a company that leased them to an Iranian customer. Boeing also had to abandon plans to supply more than $16 billion in passenger jetliners to Iran.

“It’s certainly true that US sanctions have left commercial airlines in Iran with among the oldest passenger planes in the world,” aviation analyst Alex Macheras said.

“And while older aircraft in the West remain safe to fly — given constant maintenance, cockpit software updates, and structural upgrades, it simply isn’t the case for Iran — where some of the necessary maintenance cannot take place, as spare parts contain more than 10 percent US technology content, meaning they need US treasury export licenses.”

Europe openly disagrees with the new sanctions, with the UK, Germany and France hoping to continue the nuclear deal, with or without US involvement. An EU statement said preserving the agreement was “a matter of respecting international agreements and a matter of international security”.

Brussels has also expressed willingness to support European businesses. Alistair Burt, the British minister of state for the Middle East, said Washington has not made the right decision to impose economic sanctions on Teheran.

But, with the US also pushing foreign countries to reduce their oil imports from Iran by November, the impact of sanctions on the faltering economy and the public could be dire.

“The majority of Iranians are not into politics and they just want to secure their daily needs for them and for their families,” said Doctor Ali Bakeer, a political analyst specializing in Iran.

“However this is almost becoming impossible for them as the inflation in the country is skyrocketing and so the value of the Iranian riyal is sinking against the dollar, not to mention the unemployment indicator which has been going up for so long.”

For now, though, Iranians say they can only wait for the next Trump tweet or their government’s decision on how to respond.

“The situation is not good right now; nothing is clear,” said Ebrahim Gholamnejad, a 41-year-old carpenter.

“The economy is turning into a jungle. People should just keep calm, because the other party wants to disrupt our peace. America, who imposed the sanctions, wants to create chaos.”