Iran rolls back nuclear pledges but stops short of violating pact

Iran announced on Wednesday it was relaxing some curbs to its nuclear program, announcing steps that stop short of violating its 2015 deal with world powers for now, but threatening more action if countries do not shield it from U.S. sanctions.

Hours later, the United States said it was not finished imposing sanctions on Iran and planned more “very soon”. It warned Europe against doing business with Tehran via a system of non-dollar trade to circumvent U.S. sanctions.

A year to the day after Washington exited the nuclear deal, Iranian President Hassan Rouhani announced changes that experts said seemed tailored to ensure Tehran avoids triggering the deal’s mechanism to punish it for violations, at least for now.

“For now, nothing changes, but this could be a ticking time bomb,” a European diplomat told Reuters.

The main new measure that takes effect now would have limited practical impact: a halt to Iran’s sales of enriched uranium and heavy water to other countries.

The deal allows such sales so Iran can keep reducing its stockpiles below maximum thresholds, but Washington already effectively barred the sales with a sanctions move last week. For now, Iran’s stockpile of enriched uranium is still well below the deal’s cap and heavy water is less sensitive.