Iran's Foreign Minister Abbas Araghchi, second left, attends a meeting on Tehran's nuclear programme, with Germany's Foreign Minister Johann Wadephul, France's Minister for Europe and Foreign Affairs Jean-Noel Barrot, European Union High Representative for Foreign Affairs and Security Policy, Kaja Kallas and Britain's Foreign Secretary David Lammy, at the Intercontinental Hotel in Geneva. AFP
Iran's Foreign Minister Abbas Araghchi, second left, attends a meeting on Tehran's nuclear programme, with Germany's Foreign Minister Johann Wadephul, France's Minister for Europe and Foreign Affairs Jean-Noel Barrot, European Union High Representative for Foreign Affairs and Security Policy, Kaja Kallas and Britain's Foreign Secretary David Lammy, at the Intercontinental Hotel in Geneva. AFP
Iran's Foreign Minister Abbas Araghchi, second left, attends a meeting on Tehran's nuclear programme, with Germany's Foreign Minister Johann Wadephul, France's Minister for Europe and Foreign Affairs Jean-Noel Barrot, European Union High Representative for Foreign Affairs and Security Policy, Kaja Kallas and Britain's Foreign Secretary David Lammy, at the Intercontinental Hotel in Geneva. AFP
Iran's Foreign Minister Abbas Araghchi, second left, attends a meeting on Tehran's nuclear programme, with Germany's Foreign Minister Johann Wadephul, France's Minister for Europe and Foreign Affairs

No breakthrough reached at Iran-E3 talks over return to negotiations with US


Sunniva Rose
  • English
  • Arabic

A European summit with Iran failed to deliver a breakthrough on Friday despite all sides agreeing to continue discussions that could end the conflict.

Germany, France, the UK and the EU urged Iran to revive diplomatic negotiations with Washington. Iran said it would only consider diplomacy once Israel put an end to its bombing campaign.

“Iran is ready to consider diplomacy once again and once the aggression is stopped,” Iranian Foreign Minister Abbas Araghchi said after the meeting. “I make it crystal clear that Iran's defence capabilities are non-negotiable.”

Speaking shortly after the meeting, US President Donald Trump appeared to dismiss European diplomatic efforts. “We've been speaking to Iran and we'll see what happens,” he said, adding that he believed that talks in Geneva had not helped.

“Iran doesn't want to speak to Europe, Iran wants to speak to us. Europe is not going to be able to help on this one.”

Talks were convened in Geneva an attempt to contain the Israel-Iran war, with Europeans saying diplomacy must prevail despite the US appearing to weigh its military options.

“We invited the Iranian minister to consider negotiations with all sides, including the United States, without awaiting the cessation of strikes, which we also hope for,” said French Foreign Minister Jean-Noel Barrot.

Iran's Foreign Minister Abbas Araghchi speaks to the media after his meeting with the E3 group of European ministers. Getty Images
Iran's Foreign Minister Abbas Araghchi speaks to the media after his meeting with the E3 group of European ministers. Getty Images

Mr Trump also reiterated criticism against Director of National Intelligence Tulsi Gabbard, saying she was wrong to say in March that Iran was not seeking to build a nuclear weapon. Iran was weeks or months from having a nuclear weapon, according to Mr Trump.

His office on Thursday said that he would make a decision on whether the US will join Israel’s war on Iran “in the next two weeks”, though on Friday, he called that time frame “the maximum”.

In a joint statement, European powers took a firm line with Iran as they “reiterated their long-standing concerns about Iran’s expansion of its nuclear programme, which has no credible civilian purpose”.

“They shared their support for discussions to continue and welcomed continuing US efforts to seek a negotiated solution. They expressed their willingness to meet again in the future,” said the statement.

Mr Araghchi, who travelled out of his country for the first time since the war erupted, also said he was “in favour of continuing discussions with the E3 [Germany, France, the UK] and the European Union”.

A 'perilous moment'

Israel appears to show little appetite to put an end to hostilities. Leaders have threatened to kill Iranian supreme leader Ayatollah Ali Khamenei. Israel's envoy to the UN, Danny Danon, told the UN Security Council his country would not stop its attacks “until Iran's nuclear threat is dismantled”.

UK Foreign Secretary David Lammy described the war as a “perilous moment”.

“It is hugely important that we don’t see regional escalation of this conflict,” he said.

Speaking before the UN Human Rights Council before meeting his European counterparts in Geneva, Mr Araghchi described Israel's attacks on Iran last week as a “betrayal of diplomacy”.

The attacks caused the cancellation of the sixth round of US-Iran talks in Oman.

Iran's Foreign Minister Abbas Araghchi arrives for talks with European ministers in Geneva. Getty Images
Iran's Foreign Minister Abbas Araghchi arrives for talks with European ministers in Geneva. Getty Images

“We were supposed to meet the Americans on June 15 to craft a very promising agreement for a peaceful resolution of issues fabricated over our peaceful nuclear programme,” Mr Araghchi said.

Israel began attacking Iran on June 13, saying it aimed to prevent Iran from developing nuclear weapons. Iran says its nuclear programme does not have military purposes – a claim rejected by western countries and Israel.

Diplomacy first

Europeans argue that they are best placed to negotiate with Tehran, pointing at Mr Trump's withdrawal under his previous mandate of a 2015 nuclear deal known as the Joint Comprehensive Plan of Action.

“Military operations can delay a nuclear programme but in no way eliminate it,” Mr Barrot said.

He also warned against intentions laid out by Israeli Prime Minister Benjamin Netanyahu to force regime change in Iran.

“We know well, having seen it at work in Afghanistan, Iraq and Libya, how illusory and dangerous it is to want to impose regime change from the outside,” Mr Barrot said.

The meeting was preceded by a lunch attended by the European ministers, without Mr Araghchi, during which they reviewed preparatory discussions with US Secretary of State Marco Rubio. Mr Barrot's office said Mr Rubio had told him that the US is ready for direct contact with Iranians “at any time”.

The Europeans appeared to have delivered on Israeli demands to request a complete dismantling of Iran's nuclear programme and its ballistic missile programme, as well as its support of proxy groups throughout the Middle East. Speaking earlier in the day, French President Emmanuel Macron said that Paris's proposal to Iran would link all three issues in one package.

Mr Macron said he wanted Iran to move towards “zero nuclear enrichment”. This represents an alignment with previous requests made by Mr Trump and Mr Netanyahu.

France had previously never deviated from the position agreed in the JCPOA, which capped enrichment activities at 3.67 per cent.

A missile is intercepted over Tel Aviv on June 20, after Iran fired a salvo of missiles. AFP
A missile is intercepted over Tel Aviv on June 20, after Iran fired a salvo of missiles. AFP

Those close to the Israeli position assess that the capability of enrichment to the lower level of 3.67 per cent in the JCPOA means it is too easy to breach by enriching to a higher level. Israel says Iran could pursue a civilian nuclear programme without conducting enrichment on home soil.

This would represent a repudiation of the long-standing Iranian position that all countries are entitled to enrich uranium under UN safeguards and international treaties.

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.”

Fireball

Moscow claimed it hit the largest military fuel storage facility in Ukraine, triggering a huge fireball at the site.

A plume of black smoke rose from a fuel storage facility in the village of Kalynivka outside Kyiv on Friday after Russia said it had destroyed the military site with Kalibr cruise missiles.

"On the evening of March 24, Kalibr high-precision sea-based cruise missiles attacked a fuel base in the village of Kalynivka near Kyiv," the Russian defence ministry said in a statement.

Ukraine confirmed the strike, saying the village some 40 kilometres south-west of Kyiv was targeted.

If you go

The flights
Etihad (etihad.com) flies from Abu Dhabi to Luang Prabang via Bangkok, with a return flight from Chiang Rai via Bangkok for about Dh3,000, including taxes. Emirates and Thai Airways cover the same route, also via Bangkok in both directions, from about Dh2,700.
The cruise
The Gypsy by Mekong Kingdoms has two cruising options: a three-night, four-day trip upstream cruise or a two-night, three-day downstream journey, from US$5,940 (Dh21,814), including meals, selected drinks, excursions and transfers.
The hotels
Accommodation is available in Luang Prabang at the Avani, from $290 (Dh1,065) per night, and at Anantara Golden Triangle Elephant Camp and Resort from $1,080 (Dh3,967) per night, including meals, an activity and transfers.

 


 

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Updated: June 21, 2025, 8:08 AM