European Union top diplomat admits Iran nuclear deal difficulties

The European Union’s top diplomat during a visit to Tehran on Saturday admitted difficulties in implementing Iran’s recent nuclear deal with world powers, but maintained that the agreement was on track.

Federica Mogherini’s comments, in a joint press conference with Iran’s foreign minister Mohammad Javad Zarif, underscored tension in Tehran over the accord, which has been in force for three months.

Under the deal, all nuclear-related sanctions were lifted but Iranian officials have accused the West, particularly the United States, of failing to honour its side of the bargain.

Among their grievances is the contention that US government officials are scaring off European banks from investing in Iran for fear of falling foul of regulations that saw massive fines imposed in recent years.

Ms Mogherini, on her first trip to Iran since the nuclear deal came into force in January, said the diplomatic gains of the agreement must now be turned into “benefits in Iranians’ daily lives”.

But Mr Zarif echoed remarks from country's central bank governor Valiollah Seif about the deal not producing discernible benefits.

“It is necessary that the other side’s cooperation, especially the United States, is made good in practice, not only on paper,” Mr Zarif said, alluding to Mr Seif’s comments.

Ms Mogherini sought to play down concern.