“The Art Of Exiting The Deal”: What Happens Next?

Tuesday, May 8, 2018
By Paul Martin

by Tyler Durden
ZeroHedge.com
Tue, 05/08/2018

Despite the brief media confusion this morning, at 2pm ET this afternoon, Trump unveiled his latest skill, namely the “art of exiting the deal” when he announced that he will pull the US out of the “unacceptable” Iran nuclear deal by not re-signing the sanctions waiver, while instituting the “highest level of sanctions” against Iran, even if Trump did not explicitly unveil new sanctions besides those which already existed. At the same time, Trump explicitly left the door open for a new deal, so there is the possibility – reflected in the oil price – that as one deal ends, a new one may be negotiated.

There was more confusion over the timing of next steps, where as Treasury Secretary Steven Mnuchin announced, “Sanctions will be reimposed subject to certain 90 day and 180 day wind-down periods. At the conclusion of the wind-down periods, the applicable sanctions will come back into full effect. This includes actions under both our primary and secondary sanctions authorities.”

Adding to the complexity of the deal unwind is that the US decision was unilateral, with the rest of JCPOA signatory countries – Germany, UK, China, France and Russia – committed to remain in the deal. While we await responses from all signatories, so far the EU’s reaction has been the most vocal, with Europe vowing to uphold the Iran deal despite the US exit. How this can be implemented in practice despite Trump’s warning that any nations that transact with Iran will also be subject to sanctions, remains to be seen.

Further complicating matters is Iran’s stated desire to remain in the deal, and continue under the terms of the Nuclear Deal.

IRAN SAYS WILL START TALKS WITH EUROPEAN NATIONS, CHINA, RUSSIA
ROUHANI: FROM NOW ON, JCPOA IS BETWEEN IRAN AND 5 COUNTRIES

IRAN IS COMMITTED TO ITS OWN OBLIGATIONS, U.S. IS NOT: ROUHANI

The Rest…HERE

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