WarSclerotic

Iran’s Supreme Leader Ayatollah Ali Khamenei on Wednesday cast doubt on the ability of European countries to save the 2015 nuclear accord with world powers, and said Iran might abandon the agreement.

Khamenei urged President Hassan Rouhani not to rely too much on European support as he comes under increased pressure at home over his handling of the economy in the face of U.S. sanctions, with key ministers under attack by parliament.

Following the U.S. pullout from the international accord on May 8, European powers have been scrambling to ensure Iran continues to get the economic benefits it needs to keep it in the deal, which had aimed to curb Iran’s nuclear ambitions.

But in comments published on his official website, Khamenei told Rouhani and his cabinet on Wednesday: “There is no problem with negotiations and keeping contact with the Europeans, but you should give up hope on them over economic issues or the nuclear deal.

“The nuclear deal is a means, not the goal, and if we come to this conclusion that it does not serve our national interests, we can abandon it.”

After President Donald Trump announced the U.S. pullout in May, Khamenei set out a series of conditions for European powers to keep Iran in the deal. These included steps by European banks to safeguard trade with Iran and guarantee Iranian oil sales.

Speaking at the cabinet meeting, Khamenei said Iran would not negotiate with “indecent and confrontational” U.S. officials to reach a new agreement on its nuclear program because the U.S. “wants to boast they managed to bring Iran to the negotiation table.”

Khamenei told Rouhani and his cabinet to work “day and night” to solve Iran’s mounting economic problems, which include the collapse of the rial currency and surging unemployment.

But at the same time, he appeared to call on the parliament not to press too hard on Rouhani, who has been severely grilled over the economic performance. He said Iranian officials should unite against U.S. pressure since publicizing differences would only make the nation more unhappy.

Rouhani won two landslide elections on a platform of economic reform and opening Iran up to the outside world, and his pragmatic supporters have a majority in the parliament.

But his reputation and political influence have taken a sharp hit as his promised economic gains have failed to materialize and U.S. sanctions have begun to bite.

Washington has imposed sanctions on the acquisition of U.S. dollars by Iran and it will reimpose sanctions on Iranian oil exports and the banking sector in November.

Iran’s official unemployment rate is 12%, with youth unemployment as high as 25%. Some 60% of Iran’s 80 million people are under 30. The rial has lost more than two-thirds of its value in a year.

Iran’s parliament voted on Tuesday to reject Rouhani’s explanations for economic hardship, a sign his pragmatic faction is losing sway to hard-line rivals as new U.S. sanctions bite deeper.

The worst may yet lie ahead as senior U.S. officials have said they aim to reduce Iran’s oil exports to zero after the new round of sanctions in November.

Iran has said if it cannot sell its oil due to U.S. pressure, then no other regional country will be allowed to do so either, and has threatened to block the Strait of Hormuz, a major artery for shipping Persian Gulf oil to the world.

A senior Iranian military official said on Wednesday that if foreign forces in the Persian Gulf do not follow international laws, they will face the Revolutionary Guards’ “firm response.”