Restoring the Nuclear Deal with Iran Benefits U.S. Nonproliferation Priorities

Volume 13, Issue 1, March 15, 2021

Iran has systematically breached key limits imposed by the 2015 nuclear deal since Iranian President Hassan Rouhani announced in May 2019 that Tehran would reduce compliance with the accord. Iran’s decision to violate the multilateral nuclear deal, known as the Joint Comprehensive Plan of Action (JCPOA), was a direct response to former President Donald Trump’s decision a year earlier to withdraw from the accord and reimpose sanctions in violation of U.S. obligations.

Iran’s nuclear program does not currently pose an immediate proliferation risk and there is no indication from U.S. intelligence that Iran has resumed weaponization-related activities, but its breaches are becoming increasingly more serious and difficult—if not impossible—to fully reverse.

While these breaches are troubling, Iranian President Hassan Rouhani has gone to great lengths to keep the door open to restore full implementation of the nuclear deal and reverse Iran’s violations, if the United States lifts sanctions in compliance with its obligations under the accord.

Time is short, however, as both the Biden and Rouhani administrations face considerable domestic pressure opposing restoration of the accord. Neither wants to be perceived as making the first move or making a unilateral concession.

President Joe Biden’s failure to take early action to send a signal of U.S. good faith intentions also appears to have spurred debate in Tehran over whether or not he is serious about his stated approach of “compliance for compliance” to restore the nuclear deal, or if he intends to try and renegotiate the terms of the agreement.

Biden faces pressure from policymakers, particularly opponents of the JCPOA in Congress, to use the Trump administration’s sanctions to leverage additional concessions from Iran on a range of issues. This rhetoric further reinforces doubts in Tehran about Biden’s intentions to restore the deal. However, the idea that the Trump administration’s sanctions have created viable leverage to pressure Iran to make further concessions fails to take into account that U.S. credibility was severely diminished by Trump’s reimposition of sanctions in violation of the deal. There is little support for reimposed U.S. sanctions, which are perceived as jeopardizing an agreement that advanced global nonproliferation interests, and Iran has no interest in new negotiations until the nuclear deal is restored.

If the JCPOA collapses and Iran continues to ratchet up its nuclear activities, some U.S. allies and partners may join a U.S. pressure campaign, but the Biden administration would be hard-pressed to reconstitute the level of international support seen before the negotiations on the JCPOA. Russia and China in particular would be unlikely to support a pressure-based approach after Trump’s treatment of the nuclear deal, barring a clear indication that Iran intended to pursue nuclear weapons. Furthermore, Iran can also ratchet up its nuclear activities far more quickly than the United States could attempt to restore international support for sanctions and diplomatic isolation, giving Tehran its own leverage.

A quick, complete compliance-for-compliance restoration of the JCPOA remains the best option to roll back Iran’s nuclear program, create the time and space for future negotiations on a range of issues, and restore U.S. credibility.

The EU, as the convenor of the negotiations on the JCPOA, is the logical choice to coordinate steps by both sides to resume full implementation of their JCPOA obligations and appears willing to take on that role. Concrete action by the United States to support its stated preference for returning to the deal may help pave the way for an EU-led approach, but with increasingly serious violations of the JCPOA on the horizon and Iran’s presidential elections in June, time is short. It may behoove the EU to present a proposal of its own detailing the necessary reciprocal steps for the United States and Iran to meet their JCPOA obligations.

Failure to restore the deal risks Tehran taking further steps that increase the risk posed by its nuclear program and igniting a destabilizing nuclear competition in the region, both of which would set back U.S security interests and international nonproliferation priorities.

Maximum Pressure Triggered Nuclear Breaches

Under the JCPOA Iran is subject to stringent limitations on its nuclear program and intrusive monitoring by the International Atomic Energy Agency (IAEA). In return, the P5+1 (the United Kingdom, France, Russia, China, Germany, the EU, and, formerly, the United States) committed to waiving sanctions imposed on Iran. The United Nations Security Council also endorsed the deal in Resolution 2231 (2015), which lifted certain UN sanctions on Iran and levied restrictions on Iranian conventional arms and ballistic missile transfers.

Trump withdrew from the JCPOA in May 2018— despite acknowledging Iran’s compliance with the multilateral agreement and over the objections of key U.S. allies. Trump also ordered the reimposition of sanctions that had been lifted or waived under the JCPOA, violating U.S. obligations under the accord. From May 2018 until Trump left office in Jan. 2021, the administration continued to aggressively deny Iran any benefit of remaining in compliance with the nuclear deal and actively opposed efforts by the remaining parties to the deal to engage in legitimate trade with Iran and complete cooperative nuclear projects—even those that benefited U.S. nonproliferation priorities.

The failure of the remaining parties to the JCPOA to deliver on sanctions relief in the year after U.S. withdrawal drove Rouhani to announce in May 2019 that Iran would begin violating the JCPOA. He said Iran would continue to ratchet up its nuclear activities until sanctions relief in oil sales, banking transactions, and other areas of commerce were restored.

For nearly a year following Rouhani’s May 2019 announcement, Iran systematically announced new breaches to the JCPOA’s limits on uranium enrichment, research and development on advanced centrifuges, and stockpile size. Those breaches were carefully calibrated, overseen by IAEA inspectors, and were largely reversible, supporting Rouhani’s assertion that all JCPOA violations taken by Iran are about pressuring parties to the deal to deliver on sanctions relief and not intended to collapse the deal or impede a full restoration of the deal’s limits down the road.

In Dec. 2020, the Iranian parliament and Guardian Council approved a bill calling on the Atomic Energy Organization of Iran (AEOI) to significantly ramp up certain nuclear activities in violation of the deal. That law, hastened by the assassination of Iranian nuclear scientist Mohsen Fakhrizadeh, went into effect Dec. 23. The actions required by the nuclear law, some of which have already begun, pose a more serious risk to the JCPOA. The new law, for instance, requires Iran to take significant steps to ratchet up its uranium enrichment program, such as boosting enrichment levels to 20 percent uranium-235—a purity Iran had not reached since 2013 when Tehran agreed to cap enrichment amid JCPOA negotiations. The law also includes new breaches, including suspending more intrusive monitoring activities and beginning the production of uranium metal, which would be more difficult to reverse.

To date, between the breaches announced in 2019 and steps taken in line with the Dec. 2020 legislation Iran has:

  1. Breached stockpile limits of 300 kilograms of uranium gas and 130 metric tons of heavy water;
  2. Enriched uranium above the 3.67 percent uranium-235 limit set by the deal;
  3. Operated advanced centrifuges in excess of the JCPOA’s limits and used certain models to produce enriched uranium in violation of the accord;
  4. Resumed enrichment at the Fordow facility in violation of the deal;
  5. Abandoned operational restrictions on its uranium enrichment program;
  6. Suspended the additional protocol to its safeguards agreement and JCPOA-specific monitoring measures (a special arrangement with the IAEA is in place); and
  7. Produced gram quantities of natural uranium metal and begun work on a uranium metal production plant (the plant is not yet operational).

(For more information on the status of Iran’s violations of the JCPOA see “The Joint Comprehensive Plan of Action At A Glance.”)

Heightened but Manageable Proliferation Risk—For Now

In total, Iran’s violations have increased the proliferation risk posed by Iran’s nuclear program. Iran’s activities to ratchet up its uranium enrichment capacity have reduced the time it would take Iran to produce enough fissile material for one bomb from about 12 months (when the nuclear deal is fully implemented) to about three months, as of Feb. 2021. That breakout time will continue to shorten if Iran installs and brings online advanced centrifuges, as required by the 2020 nuclear law, and its stockpile of uranium enriched up to 20 percent continues to grow.

The Dec. 2020 nuclear law requirements stipulating that Iran stockpile uranium enriched to 20 percent and install and operate advanced centrifuges, in particular, accelerate the decrease in breakout. Iran’s advanced machines are much more efficient than the IR-1s to which Iran is limited to using under the JCPOA. The IR-2m centrifuge is estimated to be about three to four times more efficient than the IR-1 and the IR-6 an estimated seven to eight times more efficient. In total, if Iran operates 1,000 IR-2s (about half of which are already enriching) and 1,000 IR-6s (as required by the end of 2021 under the law), in addition to the 6,104 IR-1s already enriching uranium, Iran’s enrichment capacity will increase by about threefold.

Enriching to 20 percent also increases proliferation risk, as that level constitutes about 90 percent of the work necessary to enrich to weapons-grade (above 90 percent uranium-235). Once Iran has accumulated enough 20 percent enriched gas for a bomb, about 250 kilograms (or about 170 kilograms by weight), it could likely produce what is known as a significant quantity of nuclear material (one bomb’s worth, or 25 kilograms of uranium enriched to greater than 90 percent) in less than two months given its current enrichment capacity. As of mid-February, Iran had about 17 kilograms of uranium enriched to 20 percent (by weight) and it intends to produce 120 kilograms (by weight) during 2021, suggesting that Iran will not reach a bomb’s worth of 20 percent material before the end of the year at the current pace.

The decrease in breakout time is a concern. But even if Iran decided to pursue nuclear weapons, it is unlikely that Iran would withdraw from the JCPOA and the nuclear Nonproliferation Treaty (NPT) to produce just one bomb, particularly given that Tehran has never tested a nuclear device. Any such move would be met by swift international condemnation and the reimposition of sanctions. Iran has uranium enriched to less than 5 percent that, when enriched to weapons-grade, would be enough for a second bomb, but it would take another two to three months. Then Iran would need to covert and weaponize the material—a process that could take another year to 18 months.

The 12-month breakout time can be restored relatively quickly by reversing Iran’s breaches of the uranium enrichment limits—a process that could itself likely be accomplished in under three months with significant political will. Enriched uranium above the 300-kilogram stockpile limit can be quickly shipped out or blended down to natural levels, excess machines dismantled and stored, enrichment halted at Fordow, and enrichment levels dialed back to 3.67 percent uranium-235. Knowledge gained by operating advanced centrifuges is not reversible, but the excess machines themselves will be dismantled and stored under IAEA seal, so Iran will not be able to access them without inspectors knowing. Furthermore, the efficiency of the advanced machines can be taken into account in calculating and determining an acceptable breakout time in follow-up negotiations.

Work on uranium metal is more problematic. The JCPOA bans uranium metal production for 15 years because of its applicability to weapons development. While Iran claims it is pursuing uranium metal for reactor fuel, the knowledge gained would still be relevant to weaponization processes.

Though it is widely suspected that Iran experimented with uranium metal as part of its pre-2003 nuclear weapons program, it does not appear to have significant experience with large-scale production and much of the experimentation appears to have been done with surrogate metals. Restoring the JCPOA’s limits before Iran gains that valuable and irreversible expertise with metal production would benefit long-term U.S. nonproliferation priorities.

The risk posed by these breaches is further amplified by Iran’s decision to suspend the more intrusive monitoring mechanisms required by the JCPOA, including the additional protocol to its safeguards agreement. Inspectors will still be in place and have access to sites where Iran produces and stores its nuclear material as part of Iran’s legally required safeguards agreement under the Nuclear Nonproliferation Treaty (NPT).

However, the suspension of the more intrusive measures could create gaps in the IAEA’s understanding of Iran’s nuclear program, as the additional protocol gives inspectors regular access to all facilities that support the nuclear program and complimentary access to follow up on concerns about undeclared nuclear activities. Decreased access will make it more difficult to monitor Iran’s breaches of the deal and likely increase speculation about illicit nuclear activities.

Iran and the IAEA did agree to a special three-month technical arrangement Feb. 21—two days before Iran’s suspension of the measures—that will allow certain agency monitoring beyond Iran’s comprehensive safeguards agreement. Iran also committed to collect certain information relevant to the additional protocol—including tapes of continuous surveillance activities—and hand that information over to the IAEA upon sanctions relief.

Ideally, the hand-over of information will allow for inspectors to reconstruct Iran’s nuclear program during the three-month period and will mitigate any speculation of illicit activities in the absence of stringent IAEA oversight. However, the special arrangement is not a viable solution in the long term, particularly if any concerns emerge about illicit activities and materials, but it does manage the risk and buy time for diplomatic action to restore the JCPOA.

Restoring Mutual Compliance with the 2015 Nuclear Deal

Although Iran’s systematic breaches of JCPOA limits constitute serious violations of the agreement, the deal itself has proven to be an effective, verifiable arrangement when it is fully implemented. It is possible to restore the deal’s nonproliferation benefits—but only if the parties to the deal act swiftly to fully implement the JCPOA’s obligations.

There is no indication at this point that Iran is pursuing or intends to pursue nuclear weapons, but the violations have increased speculation about illicit nuclear activities and worn the patience of the European members of the deal. E3 (France, Germany, and the United Kingdom) frustration was manifest in a recent gratuitous attempt to censure Iran for its suspension of the additional protocol during the March meeting of the IAEA Board of Governors. While the E3 concern about the decrease in monitoring is warranted, pursuing the resolution risked the special technical arrangement and the space for Iran, the United States, and the parties to the JCPOA to meet to discuss restoring the accord.

Returning to full implementation of the deal will require coordination by the United States and Iran. Unsurprisingly, while both U.S. President Joe Biden and Rouhani support a restoration of the JCPOA and a mutual return to full compliance, neither wants to be perceived as acting first or unilaterally. Both appear interested in partaking in discussions facilitated by the EU, which the EU appears eager to do, but creating the necessary political conditions for all sides to accept an invitation remains a challenge.

Given that the Trump administration triggered this crisis—namely by reimposing sanctions in violation of the deal— and provoked Iran’s violations of the accord, further signaling by the Biden administration of U.S. good faith could promote an environment conducive to coordinating restoration of the nuclear deal. Biden’s failure to act early upon taking office in Jan. 2021 prompted concern in Tehran that the new U.S. president was not serious about restoring the deal as is, and that he might try to renegotiate it—a position unacceptable to Tehran.

To date, the Biden administration has insisted that it will not grant sanctions relief before talks on restoring full compliance with the deal. But the White House could take steps to signal good faith, such as reinstating waivers for JCPOA-required nonproliferation projects that would help facilitate Iran’s eventual return to compliance and more definitive action in support of humanitarian efforts. Such steps could help restore confidence in Tehran that Biden is serious about restoring the JCPOA and demonstrate that the United States acknowledges Rouhani’s efforts to keep the window open for diplomacy.

Failure to act swiftly risks the JCPOA collapsing. A collapsed JCPOA would have severe implications for regional stability and international security, as Iran’s program would be unrestrained and subject to far less monitoring at a time when the United States faces a significant credibility deficit.

Even in the absence of the accord, it is highly unlikely that Iran would make the decision to pursue nuclear weapons, but restricted IAEA monitoring and no limits on uranium enrichment would raise speculation over covert Iranian nuclear weapons ambitions. This could spur other states in the region to match Iran’s perceived nuclear capabilities or attempt a military strike on Iran’s nuclear facilities—an act that would only set back the program and be more likely to spur Tehran to pursue nuclear weapons to deter future attacks. Dissolution of the JCPOA would also significantly compromise the likelihood of Iran engaging in future nuclear nonproliferation agreements.

It is critical that the Biden administration not miss this window to restore the nonproliferation benefits of the JCPOA and use it as a platform for future diplomatic engagement.—JULIA MASTERSON, research assistant, and KELSEY DAVENPORT, director for nonproliferation policy