Prelims level : International Mains level : Governance, Constitution, Polity, Social Justice and International relations
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Why in News:

  • USA advises European countries against doing business with Tehran; Russia, China reiterate opposition to punitive steps


  • The U.S. threatened to impose more sanctions on Iran “very soon” and warned Europe against doing business with Tehran via a system of non-dollar trade to circumvent U.S. sanctions.
  • It is the time for the community of nations to strongly condemn Iran’s nuclear misconduct and increase pressure on the regime to comply with U.S. demands,” US said, adding that Washington was not “done” with sanctions on Iran. “

Special Purpose Vehicle

  • U.S. would move quickly against any attempt by European countries to undermine Washington’s sanctions pressure on Iran
  • US advised them against using the so-called Special Purpose Vehicle to facilitate non-dollar trade to get around U.S. sanctions.
  • Washington’s European allies opposed Mr. Trump’s decision to withdraw from the agreement and have failed so far to find ways to blunt the economic impact of new U.S. sanctions, which include an all-out effort to block Iran’s oil exports to starve its economy.
  • Russia remained committed to the Iran nuclear deal and denounced “unreasonable pressure” that led Tehran to suspend some of its commitments under the agreement.
  • China called on all parties to uphold the nuclear pact. “Maintaining and implementing the comprehensive agreement is the shared responsibility of all parties

US-Iran Relations:

  • United States and Iran established diplomatic relations in 1883.
  • US-Iran wasn’t very complex before World War II, but it soon turned chaotic when the US’s CIA helped stage a coup to overthrow Iranian Prime Minister Mohammad Mossadegh in 1953. Later after several years the US offered Iran a nuclear reactor and weapons-grade nuclear fuel in 1967
  • Once again, the diplomatic crisis erupted in 1988, When a US Navy ship was shot down an Iranian passenger plane, killing 290 people who were onboard.
  • Hassan Rouhani was elected president in Iran. US-Iran Nuclear Deal was signed.
  • US President Donald Trump pulled the U.S. out of the deal in 2018 and gets ready to impose sanctions over its nuclear program and claims the country is supporting militant groups in the gulf.
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