Israel's recent bombing campaign in Iran severely damaged some of its nuclear plants and killed about 1,000 Iranians. AP
Israel's recent bombing campaign in Iran severely damaged some of its nuclear plants and killed about 1,000 Iranians. AP
Israel's recent bombing campaign in Iran severely damaged some of its nuclear plants and killed about 1,000 Iranians. AP
Israel's recent bombing campaign in Iran severely damaged some of its nuclear plants and killed about 1,000 Iranians. AP

Europe takes snapback leverage to Iran talks in Istanbul


Sunniva Rose
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Europe's big three, France, the UK and Germany, are determined to brandish their most potent tool in nuclear talks with Iran as they return to the negotiating table on Friday in Istanbul, experts have said.

The so-called snapback mechanism allows for the reinstatement of six suspended UN Security Council resolutions in a move that cannot be vetoed by any of the five permanent members of the UN Security Council. The 2015 Iran nuclear deal was uniquely structured around the role of the UNSC's China, the US, Russia, France and the UK.

"It's unique leverage," said Behrooz Bayat, a former external expert at the International Atomic Energy Agency (IAEA) and senior fellow at Berlin-based think tank, the Centre for Middle East and Global Order. He said it stops "Europeans from being sidelined" by Donald Trump's US administration.

These resolutions include arms embargoes, frozen assets and restrictions on Iran’s missile and nuclear programmes.

The talks in Istanbul, announced by Iran, come one month after the German, French and British foreign ministers met their Iranian counterpart Abbas Araghchi in Geneva. The talks yielded no breakthrough but Iran said it was ready to consider diplomacy again. They were dismissed at the time by US President Donald Trump, who described them as unhelpful. The next day, he ordered air strikes on Iran's nuclear programme after weeks of Israeli air raids.

Looming deadline

Top-tier ministers will not attend the meeting. Iran will send its deputy foreign minister and Europeans will be represented by their respective ministry's political directors. Yet the talks are likely to be closely scrutinised as the October deadline looms to trigger a snapback, which takes at least 30 days.

"It's very urgent," Mr Bayat said. "To retain this leverage, Europeans have to come to a conclusion." Similar talks took place in February 2025 and November 2024.

Fordow fuel enrichment plant near Qom, Iran, after being bombed last month. Maxar Technologies / Reuters
Fordow fuel enrichment plant near Qom, Iran, after being bombed last month. Maxar Technologies / Reuters

Contacted by The National, the German Foreign Ministry confirmed the meeting will take place on Friday. A representative said if there is no "sustainable and verifiable diplomatic solution" by the end of August, "the snapback mechanism will remain an option" for the European heavyweights. Last week, French Foreign Minister Jean-Noel Barrot said UN sanctions would be reimposed in August "at the latest" without "a firm, tangible and verifiable commitment from Iran".

There is a perception in European capital cities that Iran is stalling, hoping to avoid consequences before the deadline. At the same time, positions are hardening. Iran insists it will not abandon its nuclear programme. France is now aligned with the US on demanding zero uranium enrichment. Under the nuclear deal in 2015, the figure was 3.67 per cent, deemed sufficient for civilian purposes.

Yet Iran has said it is open to a deal with the West. Reimposing UN sanctions could heighten the risk of military escalation, Mr Bayat warned, because they were all adopted under chapter seven of the UN Charter, which deals with threats to world peace and security. "Maybe Israel will feel even freer to attack than before," he said.

National pride

Israel's recent bombing campaign severely dented Iran's nuclear plants and killed about 1,000 Iranians. The nuclear programme "is now stopped" because of the severity of the damage, Foreign Minister Abbas Araghchi told Fox News on Monday. But it will eventually resume because it is a "question of national pride" for Iran, he added.

Iran insists its programme is peaceful in the face of widespread disbelief in the West due to levels of enrichment going way beyond what is needed for civilian purposes. Iran's sole civilian power plant in Bushehr is fuelled with Russian-imported uranium.

Some potential for compromise remain on the table. Iran had told Europeans that it would agree on a deal that allowed enrichment at less than 1 per cent, former US Secretary of State Antony Blinken recently said. Iran had also reportedly agreed to include its ballistic programme in the talks, a longstanding European demand.

The figure of 1 per cent might be a face-saving formula for Iran, Mr Bayat suggested. "It's a bit bizarre – uranium is already naturally enriched at 0.7 per cent," he said. "Maybe such a formula would allow the regime to talk to its constituencies [and claim] that somehow enrichment has been rescued."

Foreign ministers from France, the UK and Germany, and the EU's foreign affairs chief talk ahead of a meeting with their Iranian counterpart in Geneva. EPA
Foreign ministers from France, the UK and Germany, and the EU's foreign affairs chief talk ahead of a meeting with their Iranian counterpart in Geneva. EPA

For Britain, France and Germany, the challenge ahead lies in maintaining pressure on Iran without diplomatic talks collapsing. Europe is also keen to avoid further chaos in the region and may find a legal pathway to prolong the snapback mechanism if no deal can be reached in the next weeks.

"I assume Europeans don't want to activate the mechanism unless they are obliged to do it. On the other hand, they don't want to lose the leverage," Mr Bayat said. "It now depends on how co-operative Iran is."

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Updated: July 22, 2025, 3:16 PM