President Donald Trump will decide by May 12 whether to restore U.S. economic sanctions on Tehran, which would be a severe blow to the 2015 pact between Iran and six major powers.
Under the deal, Tehran agreed to curb its nuclear program in return for relief from economic sanctions. Trump’s predecessor, Barack Obama, struck the pact to try to keep Iran from building a nuclear weapon but Trump believes it has “disastrous flaws.”
Even if Trump rejects a possible remedy being worked out by U.S. and European officials and decides to bring back sanctions, the key U.S. sanctions targeting Iran’s oil sales will not immediately resume.
As a result, oil markets and companies may have some time to adjust to the prospect of fresh U.S. sanctions, and diplomats could keep trying to avert them.
There are at least two avenues potentially offering more time for talks after May 12, difficult as that may seem given that Iran has strongly warned against reviving sanctions.