By now, last summer’s nuclear deal between Iran and the P5+1 countries, including the United States, is widely understood to have been a windfall for the clerical regime in Tehran. The agreement, formally known as the Joint Comprehensive Plan of Action (JCPOA), netted the Islamic Republic some $100 billion in previously escrowed oil revenue, a sum roughly equivalent to a quarter of Iran’s annual economy.
That, however, now appears to be just the tip of the iceberg. Recent days have brought new revelations that the Obama administration is planning still more economic concessions to Iran’s ayatollahs. Specifically, the White House appears to be mulling the possibility of allowing Iran limited access to the U.S. financial system, as a sweetener for its continued compliance with the terms of the JCPOA.
That plan effectively reneges on promises made by the White House last summer in selling the nuclear deal to a skeptical Congress. Back in July, in testimony before the Senate Foreign Relations Committee, Treasury secretary Jack Lew waved away congressional worries that Iran’s regime might be unjustly enriched as a result of the JCPOA. Lew pledged that, regardless of the provisions of the new nuclear deal, the administration was committed to keeping existing, and extensive, trade restrictions in place.
“Iranian banks will not be able to clear U.S. dollars through New York, hold correspondent account relationships with U.S. financial institutions, or enter into financing arrangements with U.S. banks,” Lew promised. “Iran, in other words, will continue to be denied access to the world’s largest financial and commercial market.”
Now, however, the secretary and his colleagues are singing a decidedly different tune. “Since Iran has kept its end of the deal, it is our responsibility to uphold ours, in both letter and spirit,” Lew told an audience at the Carnegie Endowment for International Peace in Washington last week. The message was abundantly clear: For the administration, allowing Iran access to the U.S. market has become an article of good faith.