Iran Gives European Countries Deadline Until November 5 to 'Save the JCPOA'

On Tuesday, September 4, Iran's Deputy Foreign Minister announced that Tehran has given European countries until November 5 to provide a practical solution for purchasing oil and trading with Iran. This date coincides with the implementation of the second phase of U.S. sanctions targeting Iran's oil industry. Abbas Araghchi stated in an interview with Iran's Channel 4 that financial systems and banking channels in European countries must be established for cooperation with Iran before November 5. He emphasized that the routes for selling oil to Europe must be determined by this date. Araghchi added, 'They know that if they do not secure this and do not find a way, we will not remain in the JCPOA. If they cannot do anything by November 5, it is pointless.' He also mentioned that European countries have not yet provided 'operational and concrete' solutions to counter U.S. sanctions. The Supreme Leader of the Islamic Republic had emphasized on September 28 that 'any negotiations with the Americans are off the table' and that President Hassan Rouhani's government should not have hope in Europe regarding the JCPOA and the economy. Iranian officials have declared the purchase of oil and banking transactions as Iran's most important expectations from the European Union. However, daily oil purchases by Europe from Iran, which were about 740,000 barrels in March, fell to 387,000 barrels in August. U.S. President Donald Trump announced on August 6 that part of the sanctions against the Islamic Republic, which had been suspended after the nuclear agreement, would be re-implemented. The first round of U.S. sanctions against Tehran targeted Iran's access to dollars, trade in metals, coal, industrial software, and the automotive industry. The U.S. has announced that in the next phase of sanctions, starting on November 4, it will target Iran's oil industry and is currently working to reduce Iran's oil imports by its allies to zero. In this interview, Araghchi acknowledged that European private companies would prefer the U.S. market over the Iranian market and would leave or have left Iran. He also stated, 'Our message to the Europeans is very clear; if you believe that the JCPOA is a security, prestige, and political issue for Europe, pay the cost for it... If America wants to punish them, you must bear the penalties and create conditions for your companies and banks to work with Iran peacefully and without worry.' Despite negotiations between Iran and Europe to continue the JCPOA and European officials' emphasis on preserving this agreement, several European companies have exited the Iranian market. French oil company Total, British Airways, KLM, and Air France, as well as automotive companies Daimler, Renault, Mazda, Hyundai, and PSA, are among those that have left the Iranian market in just the last two months. Araghchi also mentioned that U.S. sanctions have already begun, and buyers of Iranian oil have started to reduce their purchases. He added, 'U.S. pressures have peaked, and nothing more than what is happening now will occur on November 5. The U.S. has essentially played all its cards.' According to Reuters, citing shipping data and industrial sources, Iran's total oil and gas condensate exports in August reached 2.05 million barrels per day. The month before the U.S. withdrew from the JCPOA, Iran's total daily oil and gas condensate exports were 3.09 million barrels, the highest since sanctions were lifted in January 2016. The head of Iran's Management and Planning Organization called 2019 an 'exceptional year in contemporary Iranian history' and stated that due to U.S. sanctions, the budget for this year would be approved in a 'special' manner and 'in accordance with the sanctions.' Iranian officials have also reported on food storage for emergency conditions.