While tensions between Iran and the United States have escalated, Europeans have implemented a special purpose vehicle — a payment channel set up to facilitate trade with Iran and avoid US sanctions. Yet the special purpose vehicle, known as the Instrument in Support of Trade Exchanges, or Instex, hasn't satisfied Tehran. Iranian officials have compared Instex to “a car without gas.”

A year ago, the moderate government of President Hassan Rouhani probably would have gone along with the current version of Instex and given it more time to prove itself. That doesn't seem to be the case now. Instead, Tehran has become intransigent, enriching uranium beyond the nuclear deal cap of 3.67%, on its way to 4.5%.

On June 28, Iranian Deputy Foreign Minister Abbas Araghchi met in Vienna with representatives of Germany, the UK, France, Russia and China to discuss the nuclear deal — the Joint Comprehensive Plan of Action (JCPOA). Concurrently, the news about Instex going operational was announced. Araghchi welcomed it, but called it “inadequate.” A few days later, on July 3, Rouhani — known as the "diplomat sheikh” for his role as Iran's chief negotiator in nuclear talks in 2003-05 — described Instex as “empty” and “worth nothing.” His decision on Europe’s initiative was clear: “No.”

Rouhani’s reaction may have been unexpected by Westerners. They were witnessing a different Rouhani, who spoke harshly against Europe and threatened unlimited uranium enrichment. In fact, instead of appearing as usual, talking softly and diplomatically, Rouhani chose to showcase a different side of his personality. But why?