TEHRAN — Europe has been maintaining a hardline stance toward Tehran, reflected in expanding sanctions, leveraging the International Atomic Energy Agency (IAEA) to scrutinize Iran’s nuclear program, and hosting anti-Iran terrorist groups.

European leaders, like Kaja Kallas, the EU’s foreign policy chief, have called for a "united transatlantic front against threats from Iran, Russia, North Korea, and China."

However, Europe’s approach to Iran increasingly highlights its diminishing global influence and strategic missteps. In a rapidly evolving multipolar world, the continent’s rigid stance is counterproductive and needs reevaluation. 

Europe’s relationship with Iran

Europe's engagement with Iran has encompassed a complex tapestry of collaboration and discord. The landmark 2015 Joint Comprehensive Plan of Action (JCPOA), aimed at curbing Iran’s civilian nuclear program in exchange for sanctions relief, showcased Europe’s role in global diplomacy.

However, the U.S. withdrawal from the deal under President Donald Trump in 2018, and Europe’s subsequent inability to uphold its economic promises to Iran, exposed the EU’s limitations in asserting autonomy from Washington.

As a result, Iran has faced heightened scrutiny from Europe, despite its willingness to engage in talks with France, Germany, and the UK.

Iran's trade with Europe has navigated a turbulent landscape marked by sanctions and diplomatic twists. European nations export machinery, pharmaceuticals, and agricultural goods to Iran, while importing Iranian treasures like pistachios, carpets, and saffron.

The continent's firms have explored opportunities in Iran's burgeoning tech sector, with particular attention to startups and knowledge-based enterprises, driven by the potential of a market with over 90 million consumers, while energy prices in Iran are cheap, making production costs low.

However, Europe has also been hosting notorious groups like the Mujahedin-e-Khalq (MKO), an EU designated terrorist organization until recently, further eroding trust and goodwill.

These actions have fueled perceptions of EU hypocrisy and undermined their claims of "democracy" and "human rights."

The MKO horrendously tortured civilians, aided Saddam Hussein’s full-scale invasion of their own country during the 1980s, and has the blood of over 18,000 Iranians on their hands, but seemingly Europe doesn't care.

The impact of the Ukraine War on Europe

The war in Ukraine has profoundly affected Europe, diverting its attention from global diplomacy to immediate security and economic concerns. Military spending has surged, budgets have been strained, and an energy crisis has emerged as Europe scrambles to replace Russian gas and oil imports.

Europe's function as the instrument of Washington's damaging proxy conflict with Russia has curtailed its capacity to wield influence on the global stage, including its engagements with Iran.

Furthermore, the Ukraine war has deepened the fissures between Europe and the U.S. Public disagreements, such as those between U.S. President Donald Trump, his Vice President J.D. Vance, and Ukrainian President Volodymyr Zelensky, highlight the growing divide.

Trump's transactional approach to European security and his administration's willingness to subordinate European interests to domestic political theatrics have further exposed Europe's vulnerabilities.

Transatlantic rift: security and economic implications

Contrary to the wishes of Eurocentric officials like Kallas for a "united transatlantic front," the reality of U.S.-EU relations is increasingly strained.

A transatlantic rift has emerged, fueled by divergent priorities and approaches to global challenges. The U.S. has shifted its focus toward addressing the rise of China, adopting trade policies and economic strategies that sometimes conflict with European interests.

Simultaneously, disagreements over defense spending, climate change commitments, and the U.S.’s unilateral actions have deepened the divide.

These tensions underscore a partnership grappling with differing visions and diminishing cohesion in the face of evolving geopolitical landscapes.

The divide extends beyond security to economic and political realms. American firms face mounting challenges in Europe, from hefty EU fines to stringent regulations.

This tension has enhanced Trump's backing among American business elites, whose oligarchic interests align with his confrontational posture toward Europe.

Furthermore, as American firms face regulatory hurdles and significant fines in Europe, their focus has turned toward supporting policies that bolster domestic economic strength and promote assertiveness on the global stage.

These evolving priorities underscore how the interplay between U.S.-China competition and broader geopolitical shifts is reshaping regional strategies and global power dynamics, reinforcing the alignment of elite business interests with a more confrontational approach to foreign policy.

Meanwhile, Trump’s hints at realigning with Russia—potentially at Europe’s expense—have sent shockwaves through European capitals. A potential multi-faceted deal between the U.S and Russia, which could see NATO retreat from the region, reflects a broader U.S. pivot toward countering China, sidelining European priorities and threatening decades of transatlantic unity. Even the UK, long a U.S. ally bound by their supposed "special relationship," is not immune to this strain.

Trump’s public jab at Prime Minister Keir Starmer—questioning whether the UK could confront Russia alone—underscored the fragility of the “special relationship.”

The UK Labor Party’s backing of Kamala Harris over Trump in the U.S. election further muddies these waters, as do their contrasting stances regarding Ukraine’s Zelensky.

Europe’s hardline stance on Iran is unwise

In this emerging multipolar world, institutions like the European Union and NATO face existential challenges.

The emotional outpouring at the Munich Security Conference, where Chairman Christoph Heusgen was moved to tears, reflects Europe’s anxiety over its eroding influence.

The Trump Administration has openly questioned NATO’s value, with suggestions of reduced U.S. commitment or even withdrawal.

Trump recently said that the EU was formed to "screw" the U.S., launching a diatribe at the longtime U.S. partner as he once again threatened new 25 percent tariffs. He told his cabinet meeting that the bloc has "really taken advantage of us."

For Europe, already grappling with economic woes and energy insecurity, the prospect of shouldering its defense alone is daunting.

This decline in institutional relevance amplifies Europe’s vulnerabilities, particularly in its approach to Iran. Given these seismic geopolitical shifts, Europe’s unyielding posture toward Iran is increasingly untenable.

A more pragmatic approach could yield significant benefits, aligning with Europe’s strategic needs in a multipolar era.

Here are five reasons why Europe should reconsider its policy: 

1. Energy security: Iran holds vast oil and gas reserves, offering a viable alternative to Russian energy. With the Ukraine war exposing Europe’s energy vulnerabilities, closer ties with Iran could diversify supplies and stabilize prices, bolstering economic resilience.

2. Economic opportunities: Easing tensions could unlock trade and investment prospects. Iran’s market, rich in resources and human capital, presents untapped potential for European firms seeking growth amid domestic stagnation.

3. Security cooperation: Iran’s strategic position makes it a key player in addressing regional threats like terrorism and unwanted migration—issues that directly impact Europe. Collaborative efforts could enhance stability in West Asia, benefiting both parties.

4. Avoiding alienation: A hardline policy risks driving Iran deeper into the orbit of Russia and China, forming an effective bloc that could challenge European interests. Diplomacy with Iran could instead counterbalance this trend, preserving Europe’s remaining leverage.

5. Focus on recovery: With the Ukraine war draining resources, Europe should prioritize policies that aid its economic and social recovery. Antagonizing Iran diverts attention from these pressing domestic needs, prolonging Europe’s vulnerabilities.
In rethinking its Iran policy, Europe can not only secure tangible benefits but also reclaim a measure of relevance in a world no longer dominated by American dictates.

The time for a bold, forward-looking shift is now—before the geopolitical tides leave Europe further adrift.