President Donald Trump on Tuesday pulled the United States out of an international nuclear deal with Iran in a step that will raise the risk of conflict in the Middle East, upset America’s European allies and bring uncertainty to global oil supplies.
Mr Trump, speaking in a televised address from the White House, said he would reimpose economic sanctions on Iran.
“This was a horrible one-sided deal that should have never, ever been made,” Mr Trump said. “It didn’t bring calm. It didn’t bring peace. And it never will.”
President Donald Trump delivers a statement on the Iran nuclear deal from the Diplomatic Reception Room of the White House. Source: AAP
The 2015 deal, worked out by the United States, five other international powers and Iran, eased sanctions on Iran in exchange for the country limiting its nuclear program. The pact is seen by many in the West as a way to prevent Iran from obtaining a nuclear bomb.
But Mr Trump complains that the agreement, the signature foreign policy achievement of his predecessor Barack Obama, does not address Iran’s ballistic missile program, its nuclear activities beyond 2025 nor its role in conflicts in Yemen and Syria.
He also said the agreement did not prevent Iran from cheating and continuing to pursue nuclear weapons.
“It is clear to me that we cannot prevent an Iranian nuclear bomb under the decaying and rotten structure of the current agreement,” he said. “The Iran deal is defective at its core.”
Mr Trump said he was willing to negotiate a new deal with Iran, but Tehran already has ruled that out and threatened unspecified retaliation if Washington pulled out.
Iranian President Hassan Rouhani said on Tuesday that Iran will remain in the nuclear deal without Washington.
World leaders react
Former president Barack Obama said the decision to withdraw from the nuclear deal was "misguided".
"There are few issues more important to the security of the United States than the potential spread of nuclear weapons, or the potential for even more destructive war in the Middle East," Mr Obama said in a statement.
"The reality is clear. The JCPOA is working – that is a view shared by our European allies, independent experts, and the current US Secretary of Defense."
Mr Obama added: "That is why today's announcement is so misguided. Walking away from the JCPOA turns our back on America's closest allies, and an agreement that our country's leading diplomats, scientists, and intelligence professionals negotiated. In a democracy, there will always be changes in policies and priorities from one Administration to the next."
Former vice president Joe Biden labelled the decision a "profound mistake" and that President Trump has "manufactured a crisis for his own political interests".
"It will isolate the United States from nearly every major world power. It will weaken our credibility and global leadership," Mr Biden said.
"It will allow Iran to garner international sympathy while doing nothing to reduce its harmful activities across the Middle East."
In a joint statement, UK Prime Minister Theresa May, German Chancellor Angela Merkel and French President Emmanuel Macron said they were concerned by Mr Trump's decision.
"We urge the US to ensure that the structures of the JCPoA can remain intact, and to avoid taking action which obstructs its full implementation by all other parties to the deal," the statement read.
"We encourage Iran to show restraint in response to the decision by the US; Iran must continue to meet its own obligations under the deal, cooperating fully and in a timely manner with IAEA inspection requirements," it added.
Australian Prime Minister Malcolm Turnbull said it regretted Mr Trump's decision, but was optimistic the deal will survive without the US.
"We certainly regret the decision of the US, although President Trump had foreshadowed that for some time. We encourage all parties to continue to comply with the deal," Mr Turnbull said.
Beatrice Fihn, the executive director of the International Campaign to Abolish Nuclear Weapons and the 2017 Nobel Peace Prize winner, tweeted in all-caps her disappointment.
Iran leader Hassan Rouhani said Mr Trump would not pressure the Iranian people with "psychological warfare".
Iranian state television said Mr Trump’s decision to withdraw was “illegal, illegitimate and undermines international agreements.”
The deal was "a recipe for disaster, a disaster for our region, a disaster for the peace of the world," Israeli Prime Minister Benajmin Netanyahu, who has long opposed the deal vocally, said in praising Mr Trump's decision to quit.
America First
Abandoning the Iran pact is part of Mr Trump’s high-stakes “America First” policy, which has seen the United States announce its withdrawal last year from the Paris climate accord and come close to a trade war with China.
Mr Trump has attempted to erase major parts of Democrat Obama’s legacy and last year withdrew from the 12-nation Trans-Pacific Partnership trade deal the Paris climate accord.
Renewing sanctions would make it much harder for Iran to sell its oil abroad or use the international banking system.
Oil prices recouped some losses after Mr Trump’s announcement, in a volatile session in which prices slumped as much as 4 percent earlier in the day.
Brent crude futures LCOc1 settled 1.7 percent lower at $74.85 a barrel while US West Texas Intermediate (WTI) crude futures CLc1 ended the session 2.4 percent lower at $69.06 per barrel.
Wall Street remained in negative territory while energy stocks cut earlier losses after Mr Trump spoke.
Mr Trump’s decision is a snub to European allies such as France, Britain and Germany who also are part of the Iran deal and tried hard to convince the US president to preserve it. The Europeans must now scramble to decide their own course of action with Tehran.
China and Russia also are signatories to the Iran deal.
Renewed sanctions
Mr Trump did not provide details of what he described as the “highest level of economic sanctions” that he is reimposing on Iran.
According to the US Treasury, sanctions related to Iran’s energy, auto and financial sectors will be reimposed in three and six months.
Iran’s growing military and political power in Yemen, Syria, Lebanon and Iraq worries the United States, Israel and US Arab allies such as Saudi Arabia.
Israel has traded blows with Iranian forces in Syria since February, stirring concern that major escalation could be looming.
Minutes before Mr Trump’s announcement, Israel said it had instructed local authorities in the Israeli-held Golan Heights to “unlock and ready (bomb) shelters” after identifying what the military described as “irregular activity of Iranian forces in Syria.”
The military statement said its defense systems had been deployed “and IDF (Israel Defence Force) troops are on high alert for an attack.”
Senator Bob Menendez, the top Democrat on the Foreign Relations Committee, said abandoning the Iran deal was a threat to US national security.
“With this decision President Trump is risking US national security, recklessly upending foundational partnerships with key US allies in Europe and gambling with Israel’s security,” Menendez said.
