French fix for Iran!

France has offered Iran access to $15 billion in credit to stave off economic collapse if Tehran returns to the terms of the 2015 nuclear deal and negotiates over security issues including its regional policies. Officials engaged in intense discussions with Iran believe a staged release of funds, equal to the revenues Tehran believes it has lost under US sanctions, could unlock the crisis. France, Germany and the UK are ready to offer the credit facility if Tehran accepted conditions and the US approved the deal.

Bruno Le Maire, the French Finance Minister, has arrived in Washington to consult with US Treasury Secretary Steve Mnuchin on the initiative. The idea was launched by French President Emmanuel Macron at the G7 summit in Biarritz last month. Talks in Paris on Monday involving the Iranian deputy foreign minister Abbas Araghchi made progress on the issue.

Ali Rabiei, a spokesman for the Tehran government, said on Tuesday that differences had advanced to technical issues of implementing the European offer. Mr Macron has set an ambitious goal of direct talks between US President Donald Trump and Iranian leader Hassan Rouhani. The two sides remain apart on how a meeting could take place, with Mr Rouhani telling Parliament on Tuesday that he was not ready to engage with Mr Trump.

“No decision has ever been taken to hold talks with the US and there has been a lot of offers for talks but our answer will always be negative,” he said. Mr Rouhani also suggested that Tehran remained intent on winding down its commitments under the 2015 deal with world powers, an indication that Iran is ready to reveal new breaches as soon as Friday. A European official said on Tuesday that talks remained fragile but that those involved were increasingly confident mediation would deliver a resolution.

The lack of trust lies behind the European decision to offer the $15bn in tranches for pre-purchasing Iranian crude, with $5bn already on the table. Iran has demanded its oil exports be restored to 700,000 barrels a day, the level before Mr Trump withdrew from the deal signed by his predecessor, Barack Obama.