Iran threat to US over sanctions

Rouhani asks Obama to block breach of nuclear deal or face ‘firm response’

Iranian president Hassan Rouhani yesterday demanded that Barack Obama block an extension of sanctions passed by the US congress, saying Tehran would otherwise “firmly respond”.

In a speech to parliament, Mr Rouhani denounced legislation passed by the US congress to extend the Iran Sanctions Act (ISA) for 10 years as a breach of Tehran’s nuclear deal with six major powers. The deal curbs Tehran’s nuclear scheme in return for the lifting of international financial sanctions. “America’s president is obliged to exercise his authority by preventing its approval and particularly its implementation and if this gross violation is carried out we will firmly respond,” Mr Rouhani said. US president Obama was expected to sign the legislation into law, the White House said on Friday. The move by the US congress was a blow to Mr Rouhani, who engineered the diplomatic opening to the West that led to the nuclear deal.

US officials have said the ISA renewal would not infringe on the nuclear agreement. Members of congress have also said the ISA extension would make it easier for sanctions to be quickly reimposed if Iran contravened the nuclear deal. Yesterday , 264 members in Iran’s 290-seat parliament issued a statement calling on the government to enact counter measures, including relaunching nuclear enrichment halted under the atomic deal, the official news agency IRNA reported.

The diplomatic thaw between Washington and Tehran over the past two years looks to be in jeopardy with US president-elect Donald Trump taking office next month. He said during his election campaign that he would scrap the nuclear agreement.

Last month, Iran’s supreme leader Ayatollah Ali Khamenei warned that the extension of sanctions would be viewed as a breach of the nuclear accord and threatened retaliation. Mr Khamenei and his hardline loyalists have criticised the deal and blamed Mr Rouhani for his government’s failure to deliver swift improvements in living standards since sanctions were lifted in January. Mr Rouhani yesterday proposed a state budget of about US$100 billion (Dh367bn) for next year, loosening the purse strings to support economic growth.

The budget for the Iranian year that will start on March 21 is up 9 per cent from the plan for the current year.