Iranian uranium metal may drive up oil prices

Iran has begun the process of producing enriched uranium metal, the UN atomic watchdog said, a move that could help it develop a nuclear weapon and that three European powers said threatened talks to revive the 2015 Iran nuclear deal, Report informs via Reuters.

Iran's steps, which were disclosed by the International Atomic Energy Agency and which Tehran said aimed to develop fuel for a research reactor, also drew criticism from the United States, which called them an "unfortunate step backward."

US and European officials made clear that Iran's decision would complicate and potentially torpedo indirect US-Iranian talks seeking to bring both nations back into compliance with the 2015 deal, which former President Donald Trump abandoned.

The deal imposed curbs on Iran's nuclear program to make it harder for Tehran to develop fissile material for nuclear weapons in return for the lifting of economic sanctions. After Trump withdrew, Iran began violating many of the restrictions.

Tehran has already produced a small amount of uranium metal this year that was not enriched. That is a breach of the deal, which bans all work on uranium metal since it can be used to make the core of a nuclear bomb.

"Today, Iran informed the Agency that UO2 (uranium oxide) enriched up to 20% U–235 would be shipped to the R&D laboratory at the Fuel Fabrication Plant in Esfahan, where it would be converted to UF4 (uranium tetrafluoride) and then to uranium metal enriched to 20% U–235, before using it to manufacture the fuel," an IAEA statement said.

A confidential IAEA report seen by Reuters said the agency had confirmed that Iran had taken steps to begin the process of producing enriched uranium metal.

Britain, France and Germany said on Tuesday they had "grave concern" about Iran's decision, which violates the nuclear deal, formally named the Joint Comprehensive Plan of Action (JCPOA).

"Iran has no credible civilian need for uranium metal R&D and production, which are a key step in the development of a nuclear weapon," they said in a joint statement issued by Britain's foreign ministry.

The US Treasury Department, on July 2, lifted sanctions against three Iranian citizens involved in the Islamic Republic's missile program.

The lifting of sanctions on Tehran could bring an additional 1 to 2 million crude oil to the market per day, which would contribute to a decrease in world oil prices.

Uranium with a 235U isotope content over 20% is called highly enriched or weapons-grade. At the dawn of the nuclear era, several samples of atomic weapons with about 90% enriched uranium were built.

Highly enriched uranium is also used in nuclear power reactors with rare or no refueling, for example, in naval reactors.