Introduction

After the triumph of Ebrahim Raisi in the June 2021 Iranian Presidential election, the US and other countries, especially the E3 (the UK, Germany, and France), which are party to the JCPOA/Iran Nuclear deal would have paid close attention to his statements, which had a clear anti-West slant. Raisi has made it unequivocally clear that while he is not opposed to the deal per se, he will not accept any diktats from the West with regard to Iran’s nuclear program or its foreign policy in the Middle East.

In addition to Raisi’s more stridently anti-US stance, at least in public, what is likely to make negotiations between Iran and the US tougher is the recent attack on an oil tanker, off Oman, operated by Zodiac Maritime, a London based company owned by an Israeli shipping magnate, Eyal Ofer. Israeli Foreign Minister Yair Lapid did not take long blame Iran for the attack, referring to this as an example of ‘Iranian terrorism’ (current Israeli PM Naftali Bennett’s policy vis-à-vis Iran is no different from that of his predecessor Benjamin Netanyahu). After Raisi’s win in June, Israel had reiterated its opposition to negotiating with Iran, and the Israeli PM termed the election of hardliner Raisi as a ‘wake up call’ for the rest of the world. Two crew members — a Romanian and a Briton, were killed in the attack.

While the Vienna negotiations between Iran and other signatories to JCPOA (the US is participating indirectly) have made significant progress, Raisi could ask for them to start afresh, in which case the US has said that it may be compelled to take strong economic measures, such as imposing sanctions on companies facilitating China’s oil imports from Iran (ever since the Biden administration has taken over there has been a jump in China’s oil purchases from Iran).

It would be pertinent to point out that pressure from pro-Israel lobbies in the US, as well as apprehensions of Israelis themselves with regard to the JCPOA, were cited as one of the reasons for the Trump administration’s maximum pressure policy vis-à-vis Iran, as well as the Biden administration’s inability to clinch an agreement with the Hassan Rouhani administration. While at one stage the Biden administration seemed to be willing to get on board the JCPOA unconditionally, it is not just domestic pressures, but also the fervent opposition of Israel to the JCPOA which has acted as a major impediment. While GCC countries Saudi Arabia and UAE were fervently opposed to the JCPOA and also influenced the Trump administration’s aggressive Iran policy, in recent months they have been working towards improving ties with Iran, and have softened their stance.

Washington should refrain from taking any harsh economic steps

At a time when the Iranian economy is in doldrums (the currency has depreciated and inflation has risen as a result of the imposition of sanctions and of Covid-19), Washington would not want to take any steps which result in further exacerbating the anti-US feeling in Iran. While commenting on the attack on the Israeli managed tanker, US Secretary of State Anthony Blinken said:

We are working with our partners to consider our next steps and consulting with governments inside the region and beyond on an appropriate response, which will be forthcoming

There is no doubt that the maximum pressure policy of the Trump administration of imposing harsh sanctions on Iran did not really benefit the US, and Joe Biden during the presidential campaign had been critical of the same. Reduction of tensions with Iran is also important given the current situation in Afghanistan, and Tehran’s importance given its clout vis-à-vis the Taliban.

US allies and their role

US allies themselves are looking forward to the revival of the JCPOA, so that they can revive economic relations with Iran. This includes the E3 (Germany, the UK, and France) and India. As mentioned earlier, GCC countries like Saudi Arabia and UAE, which in recent years have had strained ties with Iran, are seeking to re-work their relations with Tehran as a result of the changing geopolitical environment in the Middle East.

The role of US allies who have a good relationship with both Israel and Iran is important in calming down tempers, and ensuring that negotiations for revival of JCPOA are not stalled.

Conclusion

It is important for Biden to draw lessons from Trump’s aggressive Iran policy. Biden should not allow Israel or any other country to dictate its policy vis-à-vis Iran, as this will not only have an impact on bilateral relations but have broader geopolitical ramifications. Any harsh economic measures vis-à-vis Iran will push Tehran closer to China, while a pragmatic policy vis-à-vis Tehran may open the space for back channel negotiations.

Raisi on his part needs to be flexible and realize that the most significant challenge for Tehran is the current state of its economy. Removal of US sanctions will benefit the Iranian economy in numerous ways but for this he will need to be pragmatic and not play to any gallery.