What Happened
Iran has begun installing equipment to produce uranium metal to provide fuel for its Tehran Research Reactor, marking another violation of the Iran nuclear deal, Reuters reported Jan. 13, citing a statement made by the director of the U.N. nuclear watchdog. Separately, the U.S. Treasury Department also imposed sanctions on two organizations linked to Supreme Leader Ayatollah Ali Khamenei: the Execution of Imam Khomeini’s Order (EIKO) and Astan Quds Razavi (AQR).

Why It Matters
The administration of President Donald Trump remains committed to its maximum pressure campaign against Iran. Despite facing deeper U.S. sanctions, however, Iran continues to aggressively further its nuclear development, likely driven in part by a desire to secure leverage in promised negotiations with U.S. President-elect Joe Biden’s administration. Regardless of the motive, Iran’s recent expansion of nuclear activity is putting it on track to be able to more quickly develop a weapon, which will risk triggering yet more sanctions by worrying lawmakers in the United States and other Western countries.

Background
Iran’s parliament passed a law in December 2020 stipulating an expansion in nuclear development. EIKO and AQR are both major conglomerates worth billions of dollars, with real estate holdings, pharma plants, oil and gas-related firms, mines, and properties abroad. Iran is known as a Nuclear Threshold State, which means that given the right circumstances, they could construct a weapon "quickly."