Iran Opts for Dialogue with Europe ahead of Trump's Return to Office

President Donald Trump shows a signed Presidential Memorandum after delivering a statement on the Iran nuclear deal from the Diplomatic Reception Room of the White House, Tuesday, May 8, 2018, in Washington. (AP)
President Donald Trump shows a signed Presidential Memorandum after delivering a statement on the Iran nuclear deal from the Diplomatic Reception Room of the White House, Tuesday, May 8, 2018, in Washington. (AP)
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Iran Opts for Dialogue with Europe ahead of Trump's Return to Office

President Donald Trump shows a signed Presidential Memorandum after delivering a statement on the Iran nuclear deal from the Diplomatic Reception Room of the White House, Tuesday, May 8, 2018, in Washington. (AP)
President Donald Trump shows a signed Presidential Memorandum after delivering a statement on the Iran nuclear deal from the Diplomatic Reception Room of the White House, Tuesday, May 8, 2018, in Washington. (AP)

It is difficult to predict what the outcomes will be of the discussions between Iran, France, Britain and Germany about Tehran’s nuclear program in Geneva on Friday.

Last week, the UN atomic watchdog's 35-nation Board of Governors passed a resolution again ordering Iran to urgently improve cooperation with the agency and requesting a "comprehensive" report aimed at pressuring Iran into fresh nuclear talks.

Britain, France, Germany and the United States, which proposed the resolution, dismissed as insufficient and insincere a last-minute Iranian move to cap its stock of uranium that is close to weapons-grade. Diplomats said Iran's move was conditional on scrapping the resolution.

Iran has been weighing its response to the censure, debating whether to increase uranium enrichment or by being open to the proposals expected at the Geneva talks.

The discussions may seek a new nuclear deal instead of the 2015 one with Tehran that is in tatters.

As it stands, Iran is likely to opt for negotiations instead of escalation due to a number of internal, regional and international reasons.

Diplomatic sources in Paris noted US President-elect Donald Trump’s appointments of officials handling Middle East affairs, underscoring their unreserved support to Israel and clear hostility to Iran.

These appointments may lead Iran to think twice before resorting to any escalation.

Even before Trump has taken office, his circles have said that the new president will take “several executive decisions related to Iran and that will be declared on his first day in office.” The decisions will be binding and do not need Congress’ approval.

However, Trump is unpredictable and the sources did not rule out the surprise possibility of him striking a deal with Iran related to its nuclear program and behavior in the Middle East. This means that Tehran will have to make major concessions, including abandoning its policy of “exporting the revolution”.

This remains a far-fatched possibility, however. In all likelihood, Washington under Trump will return to his “maximum pressure” policy against Iran on political, diplomatic and economic levels to make it return to the negotiations table and agree on a deal that completely ends its nuclear ambitions.

So, at the Geneva meeting on Friday, Tehran will seek to achieve two main goals: a nuclear breakthrough during what remains of US President Joe Biden’s time in office, and attempt to lure the European powers away from Trump.

The truth is that Tehran is wading in the unknown. One only has to go back to Trump’s past statements about how Israel should have struck Iran’s nuclear facilities during its October 26 attack on the country.

Trump has already shown Iran his hardline stance when he ordered the assassination of Quds Forces leader Qassem Soleimani near Baghdad airport in January 2020.

Based on this, Tehran is scrambling to avert a joint American-Israeli strike that Israeli Prime Minister Benjamin Netanyahu has been dreaming of.

Iran is vulnerable now due to two main reasons: the Israeli strike in October weakened Iran’s air defenses and Netanyahu has said that Israeli jets can now run rampant over Iran without any worries.

And Tehran can no longer rely on its allied militias to threaten Israel with all-out war. Hamas in Gaza is no longer in a position to threaten Israel and neither is Hezbollah in Lebanon.

So, Iran now finds itself exposed and would rather turn to negotiations with Europe than risk escalation that would cost it dearly with Israel now that it can no longer rely on Hamas and Hezbollah.



COP29 - How Does $300 Billion Stack up?

A demonstrator sitting on the ground holds a poster during a climate protest in Lisbon, to coincide with the closing of the COP29 Climate Summit Saturday, Nov. 23, 2024. (AP)
A demonstrator sitting on the ground holds a poster during a climate protest in Lisbon, to coincide with the closing of the COP29 Climate Summit Saturday, Nov. 23, 2024. (AP)
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COP29 - How Does $300 Billion Stack up?

A demonstrator sitting on the ground holds a poster during a climate protest in Lisbon, to coincide with the closing of the COP29 Climate Summit Saturday, Nov. 23, 2024. (AP)
A demonstrator sitting on the ground holds a poster during a climate protest in Lisbon, to coincide with the closing of the COP29 Climate Summit Saturday, Nov. 23, 2024. (AP)

Countries agreed at the UN's COP29 climate conference to spend $300 billion on annual climate finance. Here are some ways of understanding what that sum is worth:

MILITARY MIGHT

In 2023, governments around the globe spent $6.7 billion a day on military expenditure, according to the Stockholm International Peace Research Institute.

That means the $300 billion annual climate finance target equates to 45 days of global military spending.

BURNING OIL

$300 billion is currently the price tag for all the crude oil used by the world in a little over 40 days, according to Reuters calculations based on global crude oil demand of approximately 100 million barrels/day and end-November Brent crude oil prices.

ELON MUSK

According to Forbes, Elon Musk's net worth stood at $321.7 billion in late November. The world's richest man and owner of social media platform X has co-founded more than half a dozen companies, including electric car maker Tesla and rocket producer SpaceX.

STORM DAMAGE

Hurricane Katrina, one of the most devastating and deadliest cyclones in US history, caused $200 billion in damage alone in 2005.

This year's climate-fueled Hurricane Helene could end up costing up to $250 billion in economic losses and damages in the US, according to estimates by AccuWeather. While preliminary estimates by Morningstar DBRS suggest Hurricane Milton, also supercharged by ocean heat, could cost both the insured and uninsured nearly $100 billion.

BEAUTY BUYS

The global luxury goods market is valued at 363 billion euros ($378 billion) in 2024, according to Bain & Company.

COPPER PLATED

The GDP of Chile - the world's largest copper producing country - stood at $335.5 billion in 2023, according to World Bank data.

GREECE'S BAIL OUT

Euro zone countries and the International Monetary Fund spent some 260 billion euros ($271 billion) between 2010 and 2018 on bailing out Greece - the biggest sovereign bailout in economic history.

BRITISH BONDS

Britain's new government needs to borrow more to fund budget plans. Gilt issuance is expected to rise to 296.9 billion pounds ($372.05 billion) for the current financial year.

TECH TALLY

A 10% share of tech giant Microsoft is worth just over $300 billion, according to LSEG data. Meanwhile the market cap for US oil major Chevron stood at $292 billion.

CRYPTO

The annual climate finance target amounts to 75% of the total value of the global market for crypto currency Ether, the world's second-largest cryptocurrency.

Alternatively, 3 million Bitcoin would cover the annual climate finance target as the world's largest cryptocurrency closes in on the $100,000 mark following a rally fueled by Donald Trump winning the Nov. 5 US presidential election.