Trump's withdrawal from the Iran deal raises frightening questions

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European countries say Mr Trump's decision will increase the risk of conflict in the region.

Iranian President Hassan Rouhani ordered his diplomats to negotiate with their European, Russian and Chinese counterparts, though he threatened that Iran would commence unlimited uranium enrichment if the continued negotiations do not yield results within several weeks. "Too early to judge", he said.

British Foreign Secretary Boris Johnson told his Parliament that Britain will continue to respect the deal as long as global inspectors can verify Iran's compliance.

China insisted it would maintain "normal economic and trade exchanges with Tehran" and "continue to devote itself to safeguard and implement the deal".

Fakhrieh-Kashan, who is largely believed to have played a key role in sealing the plane deal, said Iran expected the decision by the France-based aviation giant to realize the fate of two additional planes it was supposed to deliver before the end of 2018.

Supporters of the Obama-era accord argue it provided "the world's most robust" monitoring regime, allowing access to the Islamic republic's most sensitive nuclear sites.

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Nimrod Barkan, Israel's ambassador to Canada, said Trump's decision actually gives Western countries the leverage they were lacking to curb Iran's development of long-range missiles and its deployment of fighters to Syria that continue to threaten Israel.

"The U.S. decision makes no difference to the British assessment that the constraints imposed on Iran's nuclear ambitions by the JCPOA remain vital for our national security and the stability of the Middle East".

If Iran goes back to its nuclear programme, other Middle Eastern countries - like Saudi Arabia - could follow suit. One of the main topics of Macron's trip to Russian Federation in May will be the Iran nuclear deal.

President Donald Trump announced that he would be taking the United States out of the "rotten" Iran nuclear deal, which he considers "the worst deal ever".

Now, clearly, President Trump takes a different view.

The sanctions seek to punish Iran for its nuclear programme by limiting its ability to sell oil or do business overseas, affecting a wide range of Iranian economic sectors and individuals.

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Days after the USA president walked away from a three-year-old deal that mandated rigorous inspections, senior administration officials said monitoring should continue regardless.

"Trump does not have the mental capacity to deal with issues", Mr Larijani said.

Oil prices steadied near 3-1/2 year highs on Friday as the prospect of new USA sanctions on Iran tightened the outlook for Middle East supply at a time when global crude production is only just keeping pace with rising demand.

Speaking at a rally in IN on Thursday Trump said tough inspections were still needed.

Many analysts expect oil prices to rise to 80-100 Dollars per barrel by the end of the year when U.S. sanctions will apply and Iranian exports will begin to shrink.

Inflationary pressure was already becoming a problem: On a year-over-year basis, the headline personal consumption expenditures price index has pushed above 2 percent for the first time since 2012. My view, having seen President Trump's statement, is that the political will is not there and that essentially what President Trump wanted to do and has done is to achieve the United States' withdrawal from the agreement.

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