Nuclear Issues

Secretary of State Mike Pompeo’s most recent announcement on Iran policy has raised some eyebrows. He indicated on Monday morning that the Trump administration will not renew waivers to importers of Iranian crude and that other suppliers (meaning Saudi Arabia) have agreed to increase production in to ensure the global oil market remains well-supplied. Skeptics question whether — after last summer’s debacle — there is sufficient trust between Washington and Riyadh for this arrangement to work. What skeptics may not have digested is that, while timing remains a problem, this is a classic win-win situation. It is a near-perfect example of the very limited universe of occasions when transactional diplomacy could actually work.

After a tumultuous week of unpredictable twists and turns during President Donald Trump’s visit to Europe, anxiety levels have risen among experts and policy makers about the coming summit between Trump and President Vladimir Putin. As President Trump himself has noted, there is no shortage of issues demanding the attention of the two leaders: Syria, Iran, arms control and — who knows — maybe even Russia’s interference in America’s elections. But energy could snake its way onto the agenda, and Trump needs to be careful not to give Putin concessions in exchange for something the Russian president already plans on doing.

Elizabeth Sherwood-Randall (@LSRTweets), former Deputy Secretary of Energy and Belfer Center Senior Fellow, talks with Aroop Mukharji (@aroopmukharji) about the mystery surrounding the Energy Department’s National Laboratories, the smart grid, the U.S. nuclear arsenal, energy sources of the future, and her favorite energy bar.

CSIS hosted Ernest J. Moniz, the co-chair and CEO of NTI and former U.S. Secretary of Energy, for a discussion in which he addressed the increased risk of nuclear miscalculation against the backdrop of today’s rapidly evolving global security threats, the need to rethink outdated nuclear deterrence postures, and the imperative to prevent nuclear proliferations and develop new fuel-cycle policy solutions. Moniz also discussed the future of the Iran nuclear agreement and the current crisis with North Korea. His remarks were followed by a discussion with John Hamre, president and CEO of CSIS.

Though the negotiation leading to the JCPOA took place over a significant stretch of time—indeed, it was built on the foundation of talks that began in 2003—it’s important to remember that the deal contains critical concessions regarding Iran’s production of plutonium, which the United States had been seeking from Tehran since the 1970s, when the two countries were allies.

In a televised speech on January 1, Iranian President Hassan Rouhani said that Tehran had imported 200 metric tons of yellowcake uranium and would import another 120 tons at an unspecified future date. The imports are permitted by the nuclear deal, the Joint Comprehensive Plan of Action (JCPOA), but nonetheless significantly exceed Iran’s needs for natural (that is, unenriched) uranium over the next 15 years. Iran’s import of such high levels of uranium suggests it may be stockpiling uranium to reach nuclear breakout before the deal’s initial limitations expire in 2031.

The JCPOA permits Iran to buy natural uranium to “replenish” its stocks as it sells enriched uranium on the international market. To date, Iran has had difficulties locating a buyer for its enriched uranium stocks – unsurprising, given the current excess of commercially available enriched uranium. This, however, has not stopped Iran from buying and stockpiling more yellowcake.

A former governor of Texas – the state that produces more crude oil, natural gas, lignite coal, wind power and refined petroleum products than any other – would seem to be a natural choice for secretary of energy. Yet, assuming he is confirmed by the Senate, Rick Perry will face a paradox.