	Overview of the Issue

In October 2017 and more explicitly in January 2018, the President linked continued U.S. participation in the Joint Comprehensive Plan of Action (JCPOA) to congressional and allied action to address the deficiencies in the JCPOA that the President identified. On May 8, he announced that the United States would cease implementing the JCPOA, using the mechanism of reimposing suspended U.S. sanctions to implement the U.S. pullout. This report bases its analysis primarily on the text of key documents involved in the issue—the JCPOA itself; U.N. Security Council Resolution 2231 of July 20, 2015, which endorsed the JCPOA; and the Iran Nuclear Agreement Review Act (INARA, P.L. 114-17 , of May 22, 2015). As President Trump noted in his October 2017 and January 2018 statements, he has the authority to cease U.S. implementation of the accord. The President's May 8, 2018, announcement that the United States would no longer implement the JCPOA indicated that he would exercise all these options to reimpose all U.S. sanctions that were revoked or suspended to implement the JCPOA. President Trump's May 8 announcement was widely foreshadowed. They refuse, and that's fine. European Reaction and Plans

The leaders of France, Germany, and Britain (the three European countries that negotiated the JCPOA alongside the United States)— as well as the EU collectively — issued a joint statement expressing "regret" over the decision. As the May 12 deadline to again waive key sanctions laws loomed, France's President Emmanuel Macron and Germany's Chancellor Angela Merkel each met with President Trump in Washington, DC, during the week of April 23, expressing support for working with the United States on additions to the JCPOA, or other U.S.-European joint action, that would address the expiration of nuclear restrictions, Iran's regional activities, and Iran's ballistic missile programs. We made a—we had movement, a ton of good progress, which will not be wasted, but we didn't get there.... 

			Iranian Reaction and Plans

Iran's President Hassan Rouhani reacted to the May 8 announcement immediately, stating that Iran would work with the remaining parties to the accord to keep it intact. He indicated that Iran would continue to implement its commitments as long as Iran derives the economic benefits of the agreement, an implicit threat that Iran might leave the accord if reimposed U.S. sanctions damage its economy significantly. Iranian officials have consistently insisted that they would not renegotiate the JCPOA under any circumstances. Senator Corker indicated in a press interview on April 29, 2018, that Congress might act to address President Trump's concerns about the JCPOA if European leaders support joint action on the JCPOA even if doing so might appear to contradict the provisions of the JCPOA. The four points are that (1) Iran is verifiably and fully implementing the JCPOA; (2) Iran has not committed an uncured material breach; (3) Iran has not taken any action that could advance a nuclear weapons program; and (4) continued suspension of sanctions (including issuance of waivers of applicable sanctions laws) is (a) appropriate and proportionate to the specific and verifiable measures taken by Iran with respect to terminating its illicit nuclear program and (b) vital to the national security interests of the United States. In his October 13, 2017, speech on Iran, President Trump announced that he was withholding INARA compliance certification on the grounds that he cannot certify that continued sanctions relief is "appropriate and proportionate" to the measures taken by Iran to terminate its illicit nuclear program. President Trump also asserted that Iran has not complied with the "spirit" of the agreement and has violated some JCPOA nuclear-related provisions. As discussed in the text box below, the refusal to certify Iranian compliance gave Congress the option to act under expedited procedures to reimpose sanctions on Iran. The sanctions, to go fully back into effect by no later than November 6, 2018 (180 days from May 8), are analyzed in significant detail in CRS Report RS20871, Iran Sanctions , by [author name scrubbed]. There is potential for Iran to react to the U.S. pullout from the JCPOA in ways unrelated to the agreement.
On May 8, 2018, President Donald Trump announced that his Administration would cease implementing U.S. commitments under the 2015 multilateral Joint Comprehensive Plan of Action (JCPOA) with Iran and reimpose all U.S. sanctions that were in place prior to the JCPOA. His announcement made reference to his previous statements on the issue, including an October 13, 2017, announcement of U.S. strategy on Iran and a January 12, 2018, statement pledging to leave the agreement unless Congress and U.S. allies acted to address the full range of U.S. concerns on Iran. In his May 8 and earlier statements, President Trump asserted that the agreement does not address the full range of potential threats posed by Iran, or permanently ensure that Iran cannot develop a nuclear weapon. President Trump also again asserted that the JCPOA provided Iran with additional financial resources with which to pursue its ballistic missile program and support its regional "malign activities." In his May 8 statement, President Trump indicated that reimposed U.S. sanctions would succeed in pressuring Iran to renegotiate the JCPOA to accommodate Administration demands.
President Trump's May 8 statement also implied that, based on an early May presentation by Israeli Prime Minister Benjamin Netanyahu, Iran has not abandoned an intent to ultimately develop a nuclear weapon. International nuclear inspectors, as well as senior U.S. officials, have consistently indicated in their reports that Iran is complying with the provisions of the JCPOA. The President foreshadowed his May 8 announcement with his October 2017 and January and April 2018 refusal to certify to Congress, under the Iran Nuclear Agreement Review Act (INARA, P.L. 114-17), that continued U.S. sanctions relief to Iran under the JCPOA is "appropriate and proportionate" to the measures taken by Iran to terminate its illicit nuclear program. The withholding of that certification did not automatically reimpose any U.S. sanctions on Iran, but gave Congress the opportunity to use expedited procedures to do so. Congress did not act to reimpose the sanctions.
The other powers that negotiated the accord with Iran—Russia, China, France, Britain, and Germany—have consistently asserted that the JCPOA is succeeding in its core objectives and that its implementation should not be jeopardized. Several European countries have sought to address President Trump's demands in negotiations with U.S. officials. In late April 2018 visits to Washington, DC, the President of France and the Chancellor of Germany told President Trump they want to work with the United States to formulate joint action that would address his concerns, but they urged that he keep the United States in the accord as a foundation on which to build additional restrictions on Iran. The leaders of Britain, France, and Germany, as well as the European Union, expressed "regret" about the U.S. decision and pledged to work with Iran to continue implementing the JCPOA. Iran's President Hassan Rouhani immediately reacted to the May 8 U.S. decision by pledging to continue implementing the accord, provided Iran continues to receive the economic benefits of the agreement.
This report analyzes the U.S. pullout from the JCPOA and its potential implications. For details on the JCPOA's provisions and related sanctions issues, see CRS Report R43333, Iran Nuclear Agreement, by [author name scrubbed] and [author name scrubbed]; and CRS Report RS20871, Iran Sanctions, by [author name scrubbed].