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
-
Richard Nephew on the U.S. military strikes on Iran’s nuclear program
Podcast
Richard Nephew, expert on sanctions and Iran’s nuclear program, joins Emily and Geoff to discuss the long history of U.S. policy towards Iran, the role of sanctions in constra...
By Emily Kilcrease & Geoffrey Gertz
-
Commentary
Energy, Economics & Security / Technology & National Security
Beyond Bans: Expanding the Policy Options for Tech-Security ThreatsStuck between a rock (the fact that banning all Chinese tech that poses a risk is expensive and impractical) and a hard place (the fact that many existing mitigation proposals...
By Geoffrey Gertz
-
Video
Indo-Pacific Security / Energy, Economics & Security
75 Years Post-Korean War: Can Trust Be Rebuilt Under the New Administration?As President Lee Jae Myung begins his term, he's taking visible steps to reset the tone with North Korea: halting propaganda broadcasts and reemphasizing past military agreeme...
By Dr. Go Myong-Hyun
-
Podcast
Middle East Security / Energy, Economics & Security
Will Iran block the Strait of Hormuz?The world has held a close eye on the Strait of Hormuz lately with Israeli and U.S. strikes on Iran. Nearly a quarter of the world's seaborne oil passes through the narrow wat...
By Rachel Ziemba
