The US wants Iran to comply with a dozen "major" demands before it lifts new and re-imposed sanctions, and is unlikely to offer any near-term sanctions relief on Iranian oil trade, US Secretary of State Mike Pompeo said Monday.
In a speech at the Heritage Foundation, Pompeo laid out the list of changes the Trump administration was seeking from Iran, including: abandonment of its nuclear weapons program; ending support for terrorist groups; withdrawing from Syria; and releasing all US citizens. The goals of these demands are "broadly" shared with European allies, Pompeo said.
Earlier this month, US President Donald Trump announced the US was exiting the Iran nuclear deal, known as the Joint Comprehensive Plan of Action, and would reinstate sanctions lifted in January 2016 as part of the deal.
Pompeo said Monday the US was not looking to renegotiate the JCPOA and offered no support for efforts from allies to broker a revised form of the deal.
"That is certainly their decision to make ... they know where we stand," he said.
He indicated the US was not open to relief for European allies from the re-imposed sanctions, saying the administration would not be granting relief to US companies also seeking commercial relationships with Iran.
"We understand that our reimposition of sanctions and the coming pressure campaign on the Iranian regime will pose financial and economic difficulties for a number of our friends," Pompeo said. "Indeed, it imposes economic challenges to Americans as well."
Pompeo said the US will "hold those doing prohibited business in Iran to account."
David Goldwyn, president of Goldwyn Global Strategies and a special envoy and coordinator for international energy affairs at the Department of State during the Obama administration, said Pompeo's remarks make clear that sanctions exemptions for allies will not be considered.
"I don't think anyone is getting any waivers," he said.
Still, Goldwyn said it was still possible that European leaders could preserve the Iran deal.
"I would not discount the ability of [European leaders] to preserve a deal," he said. "The key elements will be how much business they can deliver, and whether the Iranians value it enough to adhere to the deal."
Due to exposure to the US financial system, major oil companies will likely not be able to trade with Iran, Goldwyn said, but other sectors may be able to without running afoul of US sanctions.
"If Iran can be satisfied with European government's condoning doing business with them even if their companies don't deliver, the deal will go forward without us," Goldwyn said.
The EU announced Friday a series of measures aimed at shielding EU companies in Iran from the re-imposed US sanctions and protecting oil trade with OPEC's third largest producer.
France's Total said Wednesday it had halted plans to help develop Iran's giant South Pars natural gas field as it seeks to clarify whether the investment can avoid falling foul of US sanctions.
Iran has boosted its oil production by nearly 1 million b/d since the nuclear deal lifted Western sanctions in January 2016. It produced 3.83 million b/d in April, according to the latest S&P Global Platts OPEC survey.
The sanctions will remove less than 500,000 b/d of oil supply from the global market by the November 4 enforcement deadline, according a Platts survey of analysts.
