France: US Sanctions Against Iran Present an Opportunity for Independent European Financial Institutions

Bruno Le Maire, the French Minister of Economy, stated on Friday, October 5, that US sanctions against Iran present an opportunity for Europe to establish its own independent financial institutions. Speaking at a conference in Slovakia, he expressed, "I am convinced that the outcome of this crisis with Iran is an opportunity for Europe to have its own financial institutions so that we can trade with whomever we want." Le Maire emphasized that Washington cannot decide whether we are allowed to trade with Iran or not. Following the US withdrawal from the nuclear agreement with Iran, known as the JCPOA, Donald Trump announced the reimposition of sanctions on Iran. Meanwhile, Heiko Maas stated that Germany and the US pursue common goals regarding Iran. On October 24, the remaining five countries in the JCPOA and Iran announced the establishment of a special mechanism to circumvent US sanctions and maintain the nuclear agreement. This mechanism is expected to facilitate trade and financial transactions with Tehran amid the enforcement of US sanctions against Iran. The establishment of a 'special financial institution' for continued trade with Iran after the reimposition of US economic sanctions had been previously proposed. On the other hand, Donald Trump has warned that any individual or country violating US sanctions against Iran will face a response from the United States. Trump believes that the nuclear agreement neither serves US national interests nor prevents Iran from ultimately acquiring nuclear weapons, nor does it stop issues such as 'support for terrorism,' 'malicious activities,' or the development of the Islamic Republic's missile program. Following the US exit from the JCPOA, one phase of US sanctions has been implemented, and the second phase, which includes oil sanctions, is set to take effect on November 4. US officials state that following the reimposition of US sanctions, 'all major companies have decided to exit Iran and make decisions based on business principles.' Brian Hook, head of the Iran Action Group at the US State Department, stated last week that the 'economic reality' of the world compels these companies to choose the US over Iran, emphasizing that, in this context, there should be no concern about the financial channels that European countries are trying to establish for continued trade with Iran. Meanwhile, Mohammad Javad Zarif, Iran's Foreign Minister, previously threatened that 'if the special mechanism established by Europeans is not effective,' Iran will likely exit the JCPOA.