Nuclear Issues

The Iran nuclear deal was officially implemented on Saturday, as Iran successfully fulfilled its initial key nuclear commitments and the international community relieved major sanctions, including unfreezing about $100 billion of Iranian money. Implementation Day was met with applause from deal supporters in the U.S. and Iran, while critics have raised questions about whether Iran will adhere to its requirements and how it will flex its newfound economic power. Also in recent days, the U.S. and Iran agreed to a prisoner swap that led to the freedom of Washington Post reporter Jason Rezaian and others, and negotiated the release of American sailors detained in Iran. What does the arrival of Implementation Day mean for Iran’s nuclear program and nuclear nonproliferation, and how does it bode for the future of U.S.-Iran relations? We asked Belfer Center experts to weigh in on these and related questions.

Aaron Arnold, Associate with the Project on Managing the Atom at the Belfer Center, writes in The Hill that while Iran will soon be getting sanctions relief as the nuclear accord with the P5+1 is enacted, it has not yet taken steps to update its banking system and bring it up to international money laundering and counter-terror financing. He also suggests that in order to balance the competing political and financial concerns at play with sanctions, the international community led by the United States should make clear conditions for both exclusion and rejoining of the international financial system.

Aaron Arnold, Associate with the Project on Managing the Atom at the Belfer Center, and Nikos Passas, Professor of Criminal Justice at Northeastern University, argue in The Conversation that Iran's reintegration into the global financial system may in fact make it easier, not more difficult, to monitor Iranian financial activities for illicit transactions. They point to the fact that banks can monitor transactions for entities designated as involved in terrorist or weapons of mass destruction activities by the U.S. Treasury. They also suggest that Iran may adopt stricter money laundering standards in order to increase economic integration. While challenges remain, they suggest that building a public-private partnership between banks and regulators will ensure that Iran will be caught in any illicit financial actions after the nuclear deal.

Dennis Ross, International Council Member of the Belfer Center for Science and International Affairs and David Petraeus, Senior Fellow at the Belfer Center, write in The Washington Post that it is necessary for the United States to continue to project a strong deterrent to Iran in order to insure that it does not develop nuclear weapons after the expiration of the most stringent controls of the nuclear deal. Specifically, they argue that the United States should provide Israel with the Massive Ordinance Penetrator bomb, capable of destroying the most heavily defending Iranian nuclear sites, in order to strengthen the deterrent against trying to break out and built a nuclear weapon.

What could happen if the Iranian nuclear talks fail?

Along with President Obama, four members of the Belfer Center's Iran Working Group--Graham Allison, Nader Habibi, Payam Mohseni, and William Tobey--answer the vital question of what scenarios are possible if the negotiations fail, both sides declare diplomacy finished, and the commitments from the interim Joint Plan of Action are voided. 

Payam Mohseni, just returned from a long trip to Iran, offers his observations on Iranian attitudes toward nuclear negotiations gleaned from meetings with Iranians from across the political spectrum. He finds a distinct disconnect between Iranian and American perceptions of the relationship between the two countries.

Graham Allison and Gary Samore gather the best arguments in favor of easing sanctionson Iran to facilitate a permanent nuclear deal—and the best arguments by those who want to strengthen sanctions on Iran.

News broke yesterday that three prominent senators—Menendez (D-NJ), Kirk (R-IL), and Schumer (D-NY)—may introduce legislation this year that would impose new sanctions against Iran with a “deferred trigger.” That is, the new sanctions can be averted only if the Obama administration provides specific and difficult certifications every 30 days including that Iran is implementing the terms of the November 24 Joint Plan of Action and negotiating “in good faith” toward a final deal. Based on an advance copy of the “Nuclear Weapon Free Iran Act of 2013,” I summarize the substance of the draft legislation, including both the new proposed sanctions and the complicated set of presidential certifications and notifications to waive existing sanctions and suspend the additional sanctions.  In a second post, I examine the current legislative state of play and the likely administration objections to the draft legislation.

In the near term, the Obama administration does not yet need to engage Senators Menendez, Kirk, and Schumer on the details of their proposed Nuclear Weapon Free Act of 2013. The upcoming congressional recess and the protection of friendly senators (including Senate Majority Leader Harry Reid and Chairman of the Senate Banking and Finance Committee Tim Johnson) are likely to delay consideration of the bill for the time being. However, congressional support for sanctions legislation against Iran has strong bipartisan support, and pressure for additional legislation is likely to grow if – as seems likely – it becomes apparent in coming months that negotiations between the P5+1 and Iran on a final agreement are not faring well. In the event that the Obama administration is forced to enter into negotiations with Congress on new sanctions legislation, the White House is likely to have several objections to the proposed Senate legislation, especially on the certification requirements to waive or suspend sanctions.

As the new government of Iranian President Rouhani celebrates the temporary Geneva nuclear deal, an extremely dim picture is emerging of the drastic costs to Iran from pursuing a nuclear program under the cloud of domestic economic mismanagement and international sanctions. The IMF just released its final economic and financial statistics for 2013 and the Iranian numbers are appalling and extremely worrying for the stability of the current government.