US SANCTIONS REIMPOSED ON IRAN BUT TRUMP SAYS HE’S READY TO TALK

▶ Experts divided on the effects of financial restrictions and the likelihood of a summit between US President and Rouhani

The US yesterday reimposed financial sanctions on Iran that were suspended under the nuclear deal in 2015, while renewing President Donald Trump’s offer to meet Iranian leader Hassan Rouhani.

Mr Trump signed an executive order reintroducing the sanctions and sent a letter to the leaders of Congress noti- fying them of changes, as required by US law.

“Consistent with President Trump’s decision, the administration will be reimposing specified sanctions after August 6, the final day of the 90day wind-down period,” the White House said.

The sanctions, which took effect at midnight on Monday in Washington, bar transactions with Iran in US currency, gold, precious metals, graphite, coal and semi-finished metals, large sales of Iranian rials and issuing Iranian debt.

American imports of food and carpets from Iran are also prohibited.

Other suspended sanctions that will be reimposed on November 4 will target the energy, shipping and insurance sectors, and the central bank of Iran.

Senior US officials said at a briefing yesterday the plan was to increase economic pressure on Tehran to have “an exponential effect on Iran’s already fragile economy”.

The threat of sanctions has already weakened Iran’s hand, one official said.

“The rial is tanking, unemployment in Iran is rising and there are widespread protests over social issues and labour unrest,” the official said.

The Iranian rial hit a new low of 111,000 to the US dollar last week, as more labour strikes and protests were reported on social media.

At the same time, Mr Trump said he was willing to meet Iranian leaders “at any time” to discuss “a real comprehensive deal that will contain their regional ambitions, will end their malign behaviour, and deny them any path to a nuclear weapon”, the officials said.

US National Security Adviser John Bolton told Fox News that Iran “could take up the president’s offer to negotiate with them, to give up their ballistic missile and nuclear weapons programmes fully and verifiably, not under the onerous terms of the Iran nuclear deal – which really are not satisfactory”.

“If Iran were really serious they’d come to the table. We’ll find out whether they are or not,” Mr Bolton said.

Asked about threats to close the Strait of Hormuz, Mr Bolton said that would be Iran’s “worst mistake yet”.

But he played down the possibility: “I don’t think that they are serious about it. I think they are still bluffing.”

Trump government officials blame the nuclear deal signed under former president Barack Obama for providing the revenue for Iran to fund its regional activities.

“Looking at the region from Yemen to Syria to Gaza, the Iranian regime is using the resources from the Joint Comprehensive Plan of Action to spread human misery across the region instead of investing it in their people at home,” an official said.

But experts disagreed on the impact of renewed sanctions. Behnam Ben Taleblu of the Foundation for Defence of Democracies said they “signal that the administration is serious in its intent to recreate the leverage that existed between the US and Iran prior to the nuclear deal”.

They aim “to coerce Tehran to change its behaviour, as well as to maintain the deterrent power of secondary sanctions” in targeting nonUS companies doing business with Tehran, Mr Taleblu told The National.

US officials estimate that nearly 100 international firms have announced their intent to leave the Iranian market, particularly in the energy and the finance sectors, he said.

Renault, Total, Peugeot, General Electric, Boeing, Hyundai, Mazda, IndusInd Bank and other major companies have either left Iran or asked their investors to do so before the return of US sanctions.

Those sanctions will have a greater effect now than when they were imposed before the nuclear deal, Mr Taleblu said