Obama defends nuclear deal with Iran

President Barack Obama today defended a nuclear agreement the US and other global powers reached with Iran, warning Congress "it would be irresponsible to walk away from this deal."

In what could be Obama's defining foreign policy accomplishment, the US, together with negotiating partners the UK, France, Germany, Russia and China, has reached a comprehensive nuclear accord with Iran that will swap oil sanctions relief for nuclear concessions.

"We have stopped the spread of nuclear weapons" in the Middle East, Obama declared.

The negotiating partners, known as the P5+1 have "achieved something that decades of animosity has not, a comprehensive, long-term deal with Iran that will prevent it from obtaining a nuclear weapon."

The Republican-controlled Congress will have 60 days to review the agreement after Obama sends the accord up to Capitol Hill. And Senate majority leader Mitch McConnell (R-Kentucky) already has predicted lawmakers, leery of a deal with Iran, will approve a resolution of disapproval.

Anticipating such a move, Obama today vowed to veto "any legislation that prevents the successful implementation of this deal." Obama argued that "this is not the time for politics or posturing. Tough talk from Washington does not solve problems."

McConnell on 12 July said the fate of the US participation in the agreement likely will hang on 34 votes in the Senate he will need to sustain a veto.

US House of Representatives' Foreign Affairs Committee chairman Ed Royce (R-California) said today the deal US secretary of state John Kerry and his negotiating team have struck with Iran "is looking like a tough sell" in Congress.

The US participation in the nuclear accord constitutes an executive agreement between the Obama's administration and other governments. That means future presidents will not be beholden to its terms.

But Kerry, in Vienna today at the end of a grueling, marathon negotiating session, said he is convinced "whoever is our next president will see the wisdom of this agreement and will leave it in place."

During the nuclear talks, Iran's oil exports have been limited to 1mn-1.1mn b/d, down from 2.5mn b/d before the sanctions were imposed. Iranian oil minister Bijan Namdar Zanganeh has said Iran will be able to ramp up production quickly after a deal is announced. Iran produced 2.85mn b/d in June, tied with the UAE as Opec's third largest oil producer

While the agreement will lift the US' "nuclear-related" sanctions, which threatened to target the banks of countries that refused to reduce their purchases of Iranian oil "significantly," layers of other US sanctions will remain. Six countries now buy oil from Iran — China, India, Turkey, South Korea, Japan and Taiwan.

While under the agreement foreign oil companies will be able to resume business dealings with Iran, US companies will still be barred from participating in Iran's energy sector. "This is something Congress is going to have to consider," Kerry said.

Under the Iran Nuclear Agreement Review Act, Congress will have up to 60 days to review the agreement, plus another 12 days for Congress to try to pass a resolution of disapproval and for Obama to veto such a bill.

Lawmakers then will have another 10 days to try to override a presidential veto, for a total of 82 days in all.

di/tdf

Send comments to feedback@argusmedia.com

Request more information about Argus' energy and commodity news, data and analysis services.

Related News