Iran nuclear talks make progress in Vienna: Update

  • Market: Crude oil
  • 20/04/21

Updates with comments from the US, Iran

Diplomats negotiating the revival of the Iran nuclear deal in Vienna today gave the strongest indications to date that Washington and Tehran are ready to set aside maximalist demands and work toward the eventual lifting of US sanctions that have crippled Iran's oil exports.

The joint commission that oversees the nuclear deal, known as the Joint Comprehensive Plan of Action (JCPOA), has "decided to create a third expert group to start looking into the possible sequencing of respective measures," said the EU External Action Service's Enrique Mora, who is coordinating the meeting.

The talks to this point have focused on technical discussions in two separate groups, one looking at what Iran needs to do to return to compliance with the agreement and another looking at the US steps. Publicly, Washington and Tehran each has insisted that the other party take the first step to return to full compliance.

In moving on to the next stage of discussing sequencing of actions, the parties are signaling a willingness to reach an agreement.

"Participants reiterated their resolve to further pursue their joint diplomatic effort including in the joint commission and through continued separate contacts of the coordinator with all JCPOA participants and the US," Mora said. But he added that "much more hard work is needed."

Iran's president Hassan Rohani said today "the talks have progressed 60-70pc" and could conclude in a short time, so long as the US acts in good faith and in accordance with international law.

The US also noted progress in the talks, calling them constructive and businesslike, but warned against expecting quick results.

"There has been some progress but there remains a long road ahead," the State Department said. "It is fair to say we have more road ahead of us than we do in the rear view mirror."

Speaking today at a congressional hearing in Washington, acting undersecretary of defense Amanda Dory downplayed Iran's recent announcement of stepping up uranium enrichment to 60pc, which is well beyond what is allowed under the JCPOA.

The US has condemned the announcement but views it as "jockeying for leverage with respect to the negotiations that are underway in Vienna right now," Dory said. "It is important what is happening in public, but it is also important what is happening behind closed doors, and whether we are getting closer through the talks that are underway to a resumption of compliance on the part of Iran with the agreement."

US and Iranian diplomats have been indirectly negotiating for three weeks to identify measures to be taken on Iran's compliance with restrictions on its nuclear program and US sanctions relief. Iran formally remains part of the JCPOA, as do France, Germany, the UK, Russia and China.

The US left the agreement in 2018 under former president Donald Trump, but President Joe Biden's administration is negotiating a potential US return to the deal. US and Iranian diplomats have been negotiating indirectly through the EU and other JCPOA participants.

The latest round of talks concluded today and is expected to resume next week to give the US and Iranian diplomats time to brief their governments. Both countries' diplomats said at the conclusion of talks that they are not looking to sign an interim agreement that would only partially resolve their differences.

US sanctions have cut off more than 2mn b/d of Iranian crude exports. Iran's engineers have experience of managing fields under the enforced idleness of sanctions. The country boosted production by 700,000 b/d within a year of signing the JCPOA in 2015, and by another 300,000 b/d a year after that.


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