Iran: Cooperation with the International Atomic Energy Agency is no longer appropriate after the reimposition of sanctions

Iran: Cooperation with the International Atomic Energy Agency is no longer appropriate after the reimposition of sanctions

Dubai, United Arab Emirates — Iran is weighing its response to the reimposition of United Nations sanctions over its nuclear program, with lawmakers suggesting that the country may consider withdrawing from the Nuclear Nonproliferation Treaty . The sanctions, which were triggered via a mechanism known as "snapback," freeze Iranian assets abroad, halt arms deals with Tehran, and penalize any development of Iran’s ballistic missile program, among other measures.

The reimposition of sanctions comes as Iran’s economy is already under significant strain. The country's currency, the rial, has reached a record low, leading to increased pressure on food prices and daily life challenges. Meat, rice, and other staples are becoming increasingly unaffordable for many Iranians.

Meanwhile, concerns are growing about a potential new round of fighting between Iran and Israel, as well as the United States, following the 12-day war in June. Missile sites that were struck during this conflict appear to be being rebuilt, adding to the tension in the region.

Lawmaker Ismail Kowsari, speaking to the Young Journalists Club, indicated that Parliament would discuss the possibility of withdrawing from the nuclear treaty. "Parliament will discuss this issue ... and decide on it," he said. Parliament speaker Mohammad Bagher Qalibaf also issued a warning, stating that Iran would face reciprocal action against any country that honors the U.N. sanctions .

The sanctions were triggered by Iran's further restricting monitoring of its nuclear program and the deadlock over its negotiations with the U.S. Iran has withdrawn from the International Atomic Energy Agency (IAEA) monitoring and maintains a stockpile of uranium enriched up to 60% purity, which is a short, technical step away from weapons-grade levels of 90% .

France, Germany, and the United Kingdom have triggered the snapback mechanism, citing Iran's refusal to authorize IAEA inspectors to regain access to its nuclear sites and its failure to produce and transmit a report accounting for its stockpile of high-enriched uranium . Iran has long maintained that its nuclear program is peaceful, but the West and the IAEA have alleged that Iran had an organized weapons program up until 2003.

The U.S. Secretary of State, Marco Rubio, praised the European nations for their "decisive global leadership" in imposing the sanctions and stated that diplomacy is still an option if Iran accepts direct talks. However, it remains unclear how Iran will respond to the reimposition of sanctions.

The situation is complex and fraught with risks. Kelsey Davenport, a nuclear expert at the Washington-based Arms Control Association, warned that the Trump administration's assumption that it has a stronger hand post-strikes could be dangerous. She noted that the lack of IAEA inspections increases the risk of miscalculation and potential further strikes by the U.S. or Israel .

The implications of Iran's withdrawal from the Nuclear Nonproliferation Treaty and the reimposition of sanctions are significant and could have far-reaching consequences for the region and the global economy. As the situation continues to evolve, investors and financial professionals will need to closely monitor developments and assess the potential impact on markets and geopolitical stability.