Iran raises uranium enrichment to 20% alongside Korea Chemie seizure
Diplomatic groundwork for next US administration's sanctions relief and new strategy
[Asia Economy Reporter Naju-seok] There is speculation that Iran's seizure of the South Korean-flagged tanker 'Korea Chemie' is intended to renegotiate a 'new deal' with the United States ahead of the Biden administration's inauguration. Iran has also shown provocative nuclear actions, such as initiating the process to increase uranium enrichment to 20%, which it explains as a strategic move for negotiations with the U.S.
On the 4th (local time), foreign media analyzed that Iran's series of provocations, including seizing the Korean tanker and announcing uranium enrichment, are steps to escalate tensions with the U.S. and lead to negotiations aimed at resolving issues such as sanctions against Iran.
Earlier, the Iranian Revolutionary Guard Corps seized the Korea Chemie using a speedboat near the Strait of Hormuz, off the coast of Oman. Iran claimed the surface reason for seizing Korea Chemie was repeated violations of maritime environmental regulations. However, DM Shipping, the shipowner of Korea Chemie, refuted this, stating, "There is absolutely no reason to cause marine pollution."
Additionally, the Iranian government announced that it has begun the process of raising uranium enrichment levels to 20%. Iranian government spokesperson Ali Rabiei declared, "The procedure to enrich uranium to 20% has started at the Fordow enrichment facility." Under the 2015 Iran nuclear deal (JCPOA - Joint Comprehensive Plan of Action), Iran promised peaceful nuclear development and agreed to limit uranium enrichment to below 4%. Uranium requires enrichment above 90% to be weaponized. Although Iran claims peaceful purposes on the surface, increasing uranium enrichment is a step closer to nuclear weapons development.
Moreover, this day marks the anniversary of the death of Qasem Soleimani, commander of the Iranian Revolutionary Guard Corps, who was killed in a U.S. drone strike. Iran is sending a clear message to the U.S. and the international community on Soleimani's memorial day.
Iran is facing severe economic difficulties due to U.S. sanctions, including soaring prices and blocked crude oil exports. The U.S. economic sanctions have even blocked transactions using the dollar, worsening Iran's predicament. Furthermore, amid the COVID-19 pandemic, Iran finds it difficult to purchase medicines and other essentials due to U.S. sanctions.
Experts interpret Iran's actions as a sign that it will not passively wait for the U.S. response. Elige Renmaye, an Iran expert at the European Council on Foreign Relations (ECFR), said, "The biggest message Iran wants to convey is that it will no longer wait indefinitely for President-elect Biden or European countries to start diplomacy with Iran."
In fact, last month, the Iranian parliament decided to advance its nuclear program and declared that if the U.S. does not lift economic sanctions on Iran by early February, it will reject international nuclear inspections and withdraw all international nuclear inspectors from Iran. Although this is a threat to refuse inspections, it also implies that Iran is willing to engage in talks if sanctions are lifted.
Among experts, there is also analysis that Iran's decision to seize the Korean tanker is related to the $7 billion (7.6 trillion won) in crude oil payments that South Korea has not paid. Due to U.S. sanctions banning dollar transactions with Iran, Iran and South Korea conducted transactions by depositing payments for Iranian crude oil imports in domestic banks, which Iran then used to purchase Korean goods. However, as the U.S. tightened sanctions, these accounts were also frozen, escalating the conflict. The New York Times (NYT) also reported that behind the Iranian Revolutionary Guard Corps' seizure of the Korean tanker is the unpaid crude oil export payment from South Korea due to U.S. sanctions.
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