Europe is currently facing a dilemma: The European countries that earlier this year allowed its companies to circumvent the sanctions of the U.S. on Iran, will now probably be forced to withdraw from the Iran Nuclear deal after the visit by Mike Pompeo, U.S. Secretary of State, in Berlin.
Although on Tuesday Iran has slammed the U.S. for the nuclear weapons comment by Trump, it still fears that its European fellows will soon be following Trump’s move.
The Foreign Minister of Iran, Mohammad Javad Zarif tweeted that the administration of United States would be causing tensions after Trump’s comment in Japan that they are not looking for a regime change in Iran and not looking for any nuclear weapons.
Europe and the U.S. have totally opposite views over the Iran nuclear issue. The administration of Trump withdrew from the nuclear deal made with Iran and has last year re-imposed the sanctions on Iran. However, European countries still continue to support their multilateral agreement.
For supporting the legitimate European-Iranian trade, Britain, Germany, and France suggested in late January, the development of a new mechanism which can circumvent the U.S. sanctions by going for non-dollar trade.
The Foreign ministers of these 3 European countries, also known as E3, have said reportedly, in a joint statement that an Instrument for Supporting Trade Exchanges (INSTEX) is being set up for supporting the legitimate European and Iran trade, that will be focusing primarily on sectors that are most essential to the population of Iran, for example, agriculture-food goods and pharmaceutical and medical devices.
The New York Times has reported that so far there is not any indication that those European companies which are doing way more trade with the United States than they are with Iran, will use INSTEX and therefore risk the displeasure of Washington.