New Delhi : In a significant escalation of tensions, Iranian President Masoud Pezeshkian has officially approved a law suspending cooperation with the International Atomic Energy Agency (IAEA), the United Nations’ nuclear watchdog. This move, enacted on Wednesday, July 2, 2025, follows a 12-day conflict with Israel and the United States, which saw unprecedented airstrikes on Iran’s nuclear facilities. The decision, reported by Iranian state media, marks a critical juncture in Iran’s nuclear policy and its relations with international organizations, raising global concerns about nuclear proliferation and regional stability.
Background: The Iran-Israel-U.S. Conflict
The suspension of IAEA cooperation stems from a recent conflict that began on June 13, 2025, when Israel launched major airstrikes targeting Iranian military commanders, nuclear scientists, and nuclear facilities in Natanz, Isfahan, and Fordow. Iran retaliated with multiple waves of missile and drone attacks on Israel, resulting in 28 deaths, according to Israeli authorities. On June 22, the United States, under President Donald Trump, conducted additional strikes on the same Iranian nuclear sites, further escalating the conflict. The 12-day war, which killed over 900 people in Iran, ended with a U.S.-brokered ceasefire on June 24, 2025.
Iran’s nuclear facilities suffered significant damage, with Foreign Minister Abbas Araghchi acknowledging “serious and heavy” damage to the Fordow site in a CBS News interview. However, intercepted Iranian communications, cited by the Washington Post, suggest Tehran may have downplayed the extent of the destruction. U.S. intelligence assessments, as reported by Pentagon spokesman Sean Parnell, indicate that the strikes set Iran’s nuclear program back by one to two years.
Iran’s Decision to Suspend IAEA Cooperation
On June 25, 2025, a day after the ceasefire, Iran’s parliament overwhelmingly voted to suspend cooperation with the IAEA. The law, approved by the Constitutional Council and enacted by President Pezeshkian on July 2, stipulates that any future IAEA inspections of Iran’s nuclear sites require approval from Tehran’s Supreme National Security Council. According to state-run news agency IRNA, Pezeshkian ordered the Atomic Energy Organization of Iran, the Ministry of Foreign Affairs, and the Supreme National Security Council to implement the law immediately.
The legislation aims to “ensure full support for the inherent rights of the Islamic Republic of Iran” under the Nuclear Non-Proliferation Treaty (NPT), with a focus on uranium enrichment. Iran, a signatory to the NPT, is required to allow IAEA monitoring to verify the peaceful nature of its nuclear program. However, Tehran accuses the IAEA of collaborating with Israel and providing a pretext for the recent strikes, a claim the agency denies. Constitutional Council Spokesman Hadi Tahan Nazif emphasized that cooperation with the IAEA will remain suspended until Iran’s sovereignty, territorial integrity, and the safety of its nuclear facilities and scientists are guaranteed.
IAEA and International Reactions
The IAEA, headquartered in Vienna, Austria, expressed concern over Iran’s decision. “We are aware of these reports. The IAEA is awaiting further official information from Iran,” an agency spokesperson told CNN. IAEA Director General Rafael Grossi, whose requests to visit the bombed nuclear sites were rejected by Tehran, has faced sharp criticism from Iranian officials. Senior judiciary official Ali Mozaffari accused Grossi of “preparing the groundwork” for Israel’s raids through “deceptive actions and fraudulent reporting.”
The international community swiftly condemned Iran’s move. The U.S. State Department labeled the decision “unacceptable,” with spokesperson Tammy Bruce urging Tehran to “cooperate fully without further delay” and seize a “window of opportunity to reverse course and choose a path of peace and prosperity.” Germany’s Foreign Ministry spokesman Martin Giese called the suspension a “disastrous signal,” stressing the need for Iran to work with the IAEA for a diplomatic solution. UN Secretary-General Antonio Guterres’ spokesperson, Stephane Dujarric, described the decision as “concerning,” reiterating calls for Iran’s cooperation with the nuclear watchdog.
Israel, widely believed to possess nuclear weapons but not an NPT signatory, urged European signatories of the 2015 nuclear deal to trigger the “snapback” mechanism, which would reinstate all U.N. sanctions on Iran. Israeli Foreign Minister Gideon Saar highlighted the mechanism, set to expire in October 2025, as a response to Iran’s actions. Iranian officials have warned that such a move could prompt Tehran to withdraw from the NPT entirely.
Impact on Iran’s Nuclear Program
Iran’s suspension of IAEA cooperation raises fears that Tehran could rebuild its nuclear program without international oversight. The IAEA reported on May 31, 2025, that Iran was enriching uranium to near weapons-grade levels, triggering a June 12 resolution censuring Iran for non-compliance with its NPT obligations. This resolution, which Iran claims paved the way for the Israeli and U.S. strikes, fueled outrage in Tehran, with Supreme Leader Ayatollah Khamenei denying intentions to build a nuclear bomb, citing Islamic prohibitions against weapons of mass destruction.
Despite the damage to its facilities, Iran insists on continuing its “peaceful” nuclear program. The IAEA noted on Sunday, June 29, 2025, that U.S. strikes fell short of destroying Iran’s nuclear capabilities, estimating that Tehran could resume uranium enrichment within months. Parliament Speaker Mohammad-Bagher Ghalibaf announced plans to accelerate Iran’s civilian nuclear program, while lawmaker Hamid Reza Haji Babaei suggested that IAEA cameras in nuclear facilities would be disabled, though it remains unclear if this is a legal requirement.
Oil Prices Surge Amid Geopolitical Tensions
Iran’s decision to suspend IAEA cooperation sent shockwaves through global markets, pushing up oil prices on July 2, 2025. According to Reuters, Brent crude rose 39 cents, or 0.6%, to $67.50 per barrel, while U.S. West Texas Intermediate crude increased 31 cents, or 0.5%, to $65.76 per barrel. The price surge occurred despite a planned output increase by OPEC+ of 411,000 barrels per day in August and U.S. efforts to bolster crude inventories, which rose by 3.8 million barrels to 419 million barrels the previous week.
Experts noted that the June 24 ceasefire prevented oil prices from soaring above $130 per barrel, a scenario that could have materialized had Iran closed the Strait of Hormuz, a critical chokepoint for over 20% of global oil supplies and 50% of natural gas exports. Iran’s top military commander, Abdolrahim Mousavi, warned on July 2 that any further aggression would prompt a “more devastating response,” signaling heightened regional risks.
Erosion of International Institutions
Iran’s suspension of IAEA cooperation underscores a broader erosion of international organizations’ authority. The document highlights several factors contributing to this trend:
- Weakening of Authority: Decreased compliance with international law, exemplified by the U.S. withdrawal from the Paris Climate Agreement in 2017, reflects a decline in global governance.
- Crisis of Credibility: Lack of consensus and perceived bias toward developed countries undermine organizations like the IAEA, with Iran accusing the agency of siding with Western powers.
- Demonstration of Ineffectiveness: Limited enforcement powers, resource constraints, and outdated governance structures hamper international institutions’ ability to address global challenges.
- Loss of Legitimacy: The UN Security Council’s imbalanced composition and veto power of its five permanent members further erode trust in multilateral frameworks.
Iran’s decision, following the U.S. withdrawal from the 2015 nuclear deal in 2018, highlights the fragility of international agreements and the challenges facing the IAEA as the NPT’s safeguards inspectorate.
Current Status and Future Implications
The status of IAEA inspectors in Iran remains uncertain. Iran’s UN ambassador, Amir Saeid Iravani, confirmed on June 29 that inspectors are safe but barred from accessing nuclear sites. The new law’s implementation details are vague, with lawmaker Alireza Salimi noting that inspectors now require Supreme National Security Council approval. The suspension could obscure Iran’s nuclear activities, complicating efforts to verify its compliance with the NPT.
As tensions persist, the international community faces a delicate balancing act. Britain, France, and Germany condemned unspecified “threats” against Grossi, while Iran’s Foreign Ministry spokesman Esmaeil Baqaei framed the suspension as a reflection of public “concern and anger.” The path forward remains unclear, with diplomatic efforts stalled and the risk of further escalation looming.
Conclusion
Iran’s enactment of a law suspending cooperation with the IAEA on July 2, 2025, marks a pivotal moment in its nuclear policy and its fraught relations with Israel, the U.S., and the international community. Triggered by recent military strikes and longstanding grievances with the IAEA, the decision threatens to deepen regional instability and challenge global non-proliferation efforts. As oil prices rise and diplomatic solutions falter, the world watches closely to see whether Iran will reverse course or further entrench its defiance of international oversight.
Frequently Asked Questions (FAQs)
1. Why did Iran suspend cooperation with the IAEA?
Iran suspended cooperation with the International Atomic Energy Agency (IAEA) on July 2, 2025, following a law passed by its parliament on June 25, 2025. The decision was driven by Iran’s accusations that the IAEA collaborated with Israel and provided a pretext for Israeli and U.S. airstrikes on its nuclear facilities, which began on June 13, 2025, after an IAEA resolution censured Iran for non-compliance with the Nuclear Non-Proliferation Treaty (NPT).
2. What does the new Iranian law entail?
The law, enacted by President Masoud Pezeshkian, suspends IAEA inspections of Iran’s nuclear sites until the country’s sovereignty, territorial integrity, and the safety of its nuclear facilities and scientists are guaranteed. Any future inspections require approval from Iran’s Supreme National Security Council, and there are indications that IAEA cameras in nuclear facilities may be disabled.
3. How has the international community responded?
The U.S. State Department called Iran’s decision “unacceptable,” urging Tehran to cooperate with the IAEA. Germany labeled it a “disastrous signal,” emphasizing the need for diplomatic solutions. The UN Secretary-General’s spokesperson described the move as “concerning,” while Israel urged European nations to reinstate UN sanctions via the 2015 nuclear deal’s “snapback” mechanism.
4. What impact has this had on global oil prices?
Iran’s suspension of IAEA cooperation led to a rise in oil prices on July 2, 2025, with Brent crude increasing by 0.6% to $67.50 per barrel and U.S. West Texas Intermediate crude rising 0.5% to $65.76 per barrel. The price surge reflects fears of regional instability, though a June 24 ceasefire prevented more drastic spikes.
5. What are the implications for Iran’s nuclear program?
The suspension could allow Iran to rebuild its nuclear program without IAEA oversight, raising concerns about nuclear proliferation. Despite significant damage from Israeli and U.S. strikes, the IAEA estimates Iran could resume uranium enrichment within months. Tehran insists its program is peaceful, but the lack of inspections complicates verification.
