Iran warns of retaliation if US renews sanctions next month

Washington says these sanctions have nothing to do with the nuclear deal, but Tehran claims the continuing restrictions go against the spirit of the agreement, particularly since they have discouraged international banks from returning.

Ayatollah Ali Khamenei is shown speaking during a meeting with members of the Basij force on November 22, 2016, in the capital, Tehran. AFP Photo/HO/Khamenei.IR

TEHRAN // Iran will retaliate if the United States renews sanctions next month, supreme leader Ayatollah Ali Khamenei warned on Wednesday.

“In the issue of the nuclear deal, the current administration has committed several violations, the latest of which is the renewal of the 10-year sanctions,” Mr Khamenei said in a televised speech to thousands of members of Iran’s Basij volunteer militia.

“If these sanctions happen, it is absolutely a breach of the JCPOA,” he said. “They must know that the Islamic republic will react against it.”

Mr Khamenei was referring to the Joint Comprehensive Plan of Action agreed with world powers last year under which oil, trade and financial sanctions on Iran were eased in exchange for Tehran accepting curbs to its nuclear programme.

The US house of representatives last week voted to extend the Iran Sanctions Act, or ISA, for 10 years. The law was first adopted in 1996 to punish investments in Iran’s energy industry and deter Iran’s pursuit of nuclear weapons.

The measure will expire at the end of this year if it is not renewed. The 10-year sanctions must still be approved by the senate and president Barack Obama.

Washington says these sanctions have nothing to do with the nuclear deal, but Iran says the continuing restrictions go against the spirit of the agreement, particularly since they have discouraged international banks from returning.

“The JCPOA must not become a tool for pressuring the Iranian people,” Mr Khamenei said.

The house of representatives passed the bill one week after Republican Donald Trump was elected US president. Republicans in Congress unanimously opposed the nuclear agreement, along with about two dozen Democrats, and Mr Trump has also criticised it.

Legislators from both parties said they hoped bipartisan support for a tough line against Iran would continue under the new president.

Mr Trump once said during his campaign that he would “rip up” the agreement, drawing a harsh reaction from Mr Khamenei, who said if that happened, Iran would “set fire” to the deal.

The house of representatives also passed a bill last week that would block the sale of commercial aircraft by Boeing and Airbus to Iran.

The White House believes that the legislation would be a violation of the nuclear pact and has said Mr Obama would veto the measure even if it did pass the senate.

After years of sanctions, Iran is seeking to purchase tens of billions of dollars’ worth of planes from Airbus and Boeing to replace its ageing fleet of 1970s US aircraft.

The treasury department on Monday issued a licence to Airbus for the sale of 106 commercial planes to Iran Air, Iran’s flagship carrier, US officials said.

These would be in addition to 17 Airbus aircraft whose sale to Iran was authorised in September.

Although Airbus is based in France, it must have US approval to sell planes to Iran because at least 10 per cent of the aircraft’s components are American-made.

* Agence France-Presse and Reuters