Angela Merkel tells China that Europe supports nuclear deal with Iran

Iran's supreme leader Ali Khamanei
Iran's supreme leader Ali Khamanei
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By Mark Armstrong
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The German Chancellor is on a state visit to China

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German Chancellor Angela Merkel has met Chinese premier, Li Keqiang, on her visit to China. It comes as Iran lays out its demands for staying in the nuclear deal with world powers, from which Donald Trump says the U.S. will withdraw. But European powers have made clear their will for the deal to work.

"In any case, we are united by the attitude that we do not want to put this agreement in question,' said Merkel. "It has been laborious to negotiate this agreement. It's not perfect either. But you always have to ask yourself about the alternatives. And the alternatives are still more uncertain. And that is why we believe that it is better to stand by this agreement."

Iran's supreme leader Ali Khamenei has made it clear that Iran will stay in the deal as long as Europe can ensure his country will keep on benefitting from it.

More specifically he's now demanding that Europe must guarantee Iran's oil sales, and that European banks must guarantee business transactions with Iran.

Under sanctions Iran's oil exports and consequently its GDP fell significantly, strongly impacting its economy and spending power of citizens. The U.S. has not yet reimposed sanctions, but it has made it clear that if and when it does it expects the support of its allies in Europe.

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