Iran Ready to Ditch Nuclear Deal Commitments

Iran could be playing with fire as it threatens to ditch its commitments to the 2015 Iranian nuclear deal, officially known as the JCPOA (the Joint Comprehensive Plan of Action), in the face of crippling U.S. sanctions.

If Europe does not step in to protect Iran from those sanctions, salvaging trade with its oil and banking sectors in violation of U.S. rules, Tehran says it will return to higher levels of uranium enrichment, which would potentially pave the way for bomb-making capabilities.

But how close is the Islamic Republic to having a bomb? How real is the threat?

Richard Nephew, who served as the State Department’s lead sanctions expert for negotiations with Iran from 2013 to 2014, doesn’t see an imminent nuclear threat. Rather, he told CNBC, this turn of events heralds a slower but no less dangerous march in that direction.

“This is not a decision that will lead Iran to build a bomb. But it foreshadows a really severe escalation path, especially the 60-day threat to ramp up enrichment levels and work on the Arak reactor,” Nephew told CNBC.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza