May 18, 2018
America faces real threat from Europe to block Iran sanctions
European leaders have sharply criticized President Trump’s decision to withdraw from the landmark 2015 nuclear agreement with Iran. France, Germany, the United Kingdom and the European Union have opened negotiations with Iran to see if they can keep Iran in the agreement, and European diplomats began meeting this week to discuss strategies to insulate European companies from the U.S. sanctions that the Trump administration plans to reimpose later this year.
Administration officials and many experts in Washington have dismissed Europe’s ability to block U.S. sanctions, arguing that European companies are far more invested in the United States than Iran and will generally comply with U.S. sanctions regardless of developments in Brussels. French energy giant Total, for example, announced this week that it would stop investing in an Iranian gas field unless it can win an exemption from renewed U.S. sanctions.
But the Trump administration’s confidence in European acquiescence to renewed U.S. sanctions may be misplaced. While officials are correct that large European companies will generally comply with U.S. sanctions absent countervailing measures by Brussels, if the European Union is prepared to risk a major rift with Washington over Iran, member governments have tools to block U.S. sanctions. The administration should seek a diplomatic resolution to the brewing conflict if the alternative is watching Europe take steps that will undermine U.S. sanctions around the world.
Read the Full Article at The Hill
More from CNAS
-
The Long Tail of the Hormuz Energy Crisis with Rachel Ziemba
Podcast
Emily is joined by Rachel Ziemba, CNAS adjunct senior fellow and energy markets expert, to unpack the ongoing energy crisis resulting from the U.S.-Iran military conflict and ...
By Emily Kilcrease & Rachel Ziemba
-
India First Debate: Daniel Silverberg and Sandeep Unnithan on U.S. Rescue Op and Iran Air Defence
Video
In this episode of India Today, anchor Gaurav Sawant discusses a high-stakes US special forces mission deep inside Iran. Joined by Daniel Silverberg, Managing Director of Caps...
By Daniel Silverberg
-
Hit It with Your Best Shot
Reports
Executive Summary America needs an economic pressure doctrine. The country is using economic pressure in more novel ways and at greater scale than any other time in the postwa...
By Emily Kilcrease
-
CNAS Insights | A Year After Liberation Day, Can Trump’s Trade Wars Be Salvaged?
Commentary
As the trade wars have played out over the last year, the Trump administration has fumbled its opportunity....
By Emily Kilcrease & Geoffrey Gertz
