The U.S. withdrawal from the deal could stress already strained diplomatic relations with a number of key allies, including European Union leaders in Germany, France and the United Kingdom, all original parties in the 2015accord.
"France, Germany, and the UK regret the U.S. decision to leave the JCPOA," Macron said in a tweet. "The nuclear non-proliferation regime is at stake."
As part of the original deal, a host of countries, including Russia and China, agreed to periodically suspend sanctions on Iran so long as the Iranians complied with the terms of the deal, including regular international inspections.
But the U.S. departure from the international pact isn't the first time Trump has split with overseas allies or his presidential predecessors. The U.S. ruffled the feathers of European partners earlier this year after Trump approved 25 percent tariffs on foreign steel and 10 percent tariffs on foreign aluminum.
Leaving the deal could also have ripple effects on the oil market, given Iran's role as OPEC's third-largest oil producer. Though Brent crude has posted a sharp rally in recent days on speculation of a withdrawal and tighter supply, the severity of any sanctions could affect how much crude fluctuates in the coming weeks.
Possibly calming fears, the Treasury Department clarified that the forthcoming sanctions will be reimposed subject to certain 90-day and 180-day wind-down periods.
Finally, a U.S. exit could leave the future of Iran's nuclear program in limbo. By refusing to waive sanctions without proving that Iran is violating the deal, Trump would effectively drop the agreement made by the United States.
Iran had explored aspects of a nuclear program, including enriching uranium, gathering plutonium and researching methods of bomb-making before the 2015 agreement. Though Tehran contends that its nuclear program was always designed for peaceful purposes, its building of a plutonium reactor in northwestern Iran also drew red flags.
In spite of the U.S. incumbent's threats to withdraw, Iranian President Hassan Rouhani stated that his nation had a plan to counter any move made by Trump when it comes to the deal, Reuters reported. Ahead of the decision, Rouhani said Tuesday that Iran would continue to seek "constructive relations with the world," despite potential sanctions.
Reference: CNBC
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