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Diplomatic Tensions Rise as Germany and Iran Trade Blows Over Islamic Center Closure

Calls for tougher sanctions grow, but both nations seem hesitant to escalate further

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Germany and Iran are entangled in a growing diplomatic dispute following the expulsion of Mohammad Hadi Mofatteh, the former head of the Islamic Center Hamburg (IZH), amid allegations that the center was promoting the ideology of Iran’s Islamic Revolution in an aggressive and unconstitutional manner. The fallout from Mofatteh’s expulsion, which is set to take effect by Wednesday, has sparked calls for further sanctions against Iran.

Germany’s decision to expel Mofatteh came after intelligence reports suggested that the IZH, which he led for six years, was spreading anti-Western ideology and had close ties with Iran’s leadership and Hezbollah, a Lebanese militant group. The German government shut down the center on July 24, citing its unconstitutional activities, and confiscated its assets, banning several sub-organizations tied to it.

In retaliation, Iran responded by shutting down a German state-linked language school in Tehran on August 20. Despite this tit-for-tat move, both nations have stopped short of expelling diplomats or closing embassies, keeping diplomatic channels open.

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Peter Heidt, a member of Germany’s pro-business Free Democratic Party (FDP), expressed support for tougher measures against Tehran, especially given Iran’s alleged support for terrorism across the region. “With the Iranian regime exporting terror to Syria, Lebanon, and the Houthis, I can’t see any room for improvement in relations. We in the FDP are pushing for stricter sanctions both in Berlin and Brussels,” Heidt told Nikkei Asia.

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The latest developments come at a delicate time for Iran’s new President Masoud Pezeshkian, who has been attempting to navigate international diplomacy to ease the heavy economic sanctions burdening his country. However, Germany, along with other European Union members, has been firm in its stance on Iran, with the EU already tightening sanctions in July 2023 due to Iran’s support for Russia in the war against Ukraine. Additionally, further sanctions are under consideration due to Iran’s role in the ongoing conflict between Hamas and Israel.

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Germany’s strained ties with Iran are part of a broader European effort to contain Tehran’s influence in the Middle East. Mofatteh’s expulsion marks a significant moment in these tensions, given that he was believed to be closely aligned with Iran’s Supreme Leader, Ayatollah Ali Khamenei. If Mofatteh re-enters Germany, he faces up to three years in prison, though his current whereabouts are unknown.

Economic ties between Germany and Iran have also taken a hit. German exports to Iran dropped by 24% in 2023, according to the Federal Statistical Office, reflecting the ongoing impact of EU sanctions. The closure of the Islamic center and the language school adds another layer of complexity to the relationship between the two nations, with many watching to see if tensions will escalate further.

Despite the rising pressure, some analysts believe that both sides are avoiding outright diplomatic collapse. “The fact that both Germany and Iran targeted non-diplomatic entities—an Islamic center and a language school—suggests that they are cautious about severing diplomatic ties altogether,” said Carsten Wieland, a former diplomat specializing in Middle Eastern affairs. “Both sides want to keep channels open, especially as the nuclear accord with Iran remains a critical concern.”

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The 2015 nuclear deal, which was aimed at limiting Iran’s nuclear ambitions, is still a point of contention. Former U.S. President Donald Trump withdrew from the agreement in 2018, leaving the accord in jeopardy. However, recent reports from Iran suggest that the Pezeshkian administration is keen to revive the deal, viewing it as essential to lifting international sanctions and alleviating domestic economic woes.

For now, the diplomatic standoff between Germany and Iran seems unlikely to escalate into a full-blown crisis, but as both countries balance domestic pressures and international concerns, the situation remains fragile. With sanctions still on the table and the clock ticking for Mofatteh to leave Germany, the next moves by both governments will be closely watched by the international community.

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