US offers Iran credit lines, limited crude sales

US President Donald Trump said Monday he’d support extending what he called a “letter of credit” to Iran, secured by oil, to help the country meet short-term financial obligations.

27 August 2019
ID : 22183
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US President Donald Trump said Monday he’d support extending what he called a “letter of credit” to Iran, secured by oil, to help the country meet short-term financial obligations.

US President Donald Trump shakes hands with his French counterpart Emmanuel Macron in Biarritz, France on Monday. LUDOVIC MARIN/AFP/Getty Images

US President Donald Trump said Monday he’d support extending what he called a “letter of credit” to Iran, secured by oil, to help the country meet short-term financial obligations. 

“... They may need some money to get them over a very rough patch and if they do need money, and it would be secured by oil, which to me is great security, and they have a lot of oil, but it is secured by oil, so we are really talking about a letter of credit. It would be from numerous countries, numerous countries,” said US President Donald Trump at a news conference following a meeting of the seven developed countries, also known as the G7 in the French restor town of Biarritz on Monday, Bloomberg reported.  

However, he said that Washington is not ready to pay Iran compensation for reimposing economic sanctions, causing heavy damages to the country's economy, especially oil revenues.  

Washington reimposed heavy sanctions on Iran in two phases last year (August and November) after Trump pulled the US out of the nuclear deal, also knonwn as the Joint Comprehensive Plan of Action (JCPOA). 

Trump also said he’d be willing to meet Iranian President Hassan Rouhani under the “correct” circumstances to discuss their standoff over the 2015 nuclear deal the US president abandoned.

French President Emmanuel Macron said during a joint news conference with Trump in Biarritz, France, that he hoped to arrange a meeting between the two leaders within weeks. The American president was more cautious about a move that would signal a dramatic shift in almost a half century of broken diplomatic ties between Tehran and Washington.

Speaking at the conclusion of the Group of Seven meeting on Monday, Trump said he would meet with Rouhani “if the circumstances were correct or were right.”

“I don’t know the gentleman,” Trump said. “I think he’s going to want to meet.”

The talk of allowing even limited crude sales would be a sharp shift in what has been an ever tightening series of US economic sanctions on the Islamic Republic, including restrictions on the country’s oil sales. The comments followed televised remarks by Rouhani, who reiterated previous statements that he’s willing to talk.
“We must make use of any means for the interest of our country,” Rouhani said. “If I know that going to a meeting, meeting someone will lead to the progress of my country and resolve the problems of the people, I will not hold back. The principle is the national interest of our people.”

Though any actual summit is likely a long ways off, the back-and-forth between two leaders of countries which have considered the other an enemy for decades signaled there may be an opportunity to strike a deal, according to the report. 

Iran was a central part of the discussions at the G-7, whose European leaders are trying to hold together the nuclear deal with Tehran that Trump exited last year. Iran also generated the summit’s biggest surprise, when Iranian Foreign Minister Javad Zarif flew to Biarritz on Sunday with most world leaders having little or no advanced notice of the trip.

Zarif’s arrival and his day of meetings in the mayor’s office in Biarritz prompted speculation Trump might leave the summit altogether. But the American president didn’t let Zarif’s arrival upend his plans, even though his administration has ramped up sanctions on Iran and threatened retaliation if the Islamic Republic continues to violate the 2015 agreement. Trump said Macron had told him in advance about the Zarif visit.

Underscoring the message that France can act as a mediator on improvements to the 2015 nuclear accord, Macron accurately noted that French negotiators “hesitated most to sign this agreement” because it had “drawbacks and compromises.”

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