In July 2015, Iran entered into a landmark nuclear
deal “Parameters for a Joint Comprehensive Plan of Action (JCPOA)” with six
world powers (P5+1) the US, UK, Russia, France, China, and Germany to limit its
sensitive nuclear activities for more than a decade in return for the lifting
of crippling sanctions. This agreement has been a landmark foreign policy
achievement of Obama’s presidency. Now in Presidency, Donald Trump finds the
deal lenient and is unwilling to recertify it. This deal resulted a global
impact creating opportunities for countries and re-establishing frozen relationships.
If such strategic important international
deals had to be signed and rescinded on the whims and perceptions of individual
leaders of the leading nation and their electorates, the entire system would
collapse; and collapsing it is, with North Korea under no one’s control and
measures underway to ensure that Iran too would head the same way.

The deal involved limited installations
to 5060 Centrifuges involving Uranium enrichment, restrictions on Nuclear research
& development, barred to operate and build heavy water containing Plutonium
suitable for nuclear bomb, extraordinary and robust monitoring, verification and
inspection from global nuclear watchdog IAEA, increase in ‘Break out Time’ from
3 months to one year and most importantly lifting sanctions on selling oil in
international markets and using Global financial system. Had Iran violated any
aspect of the deal, the UN sanctions would automatically ‘snap back’ into place
for 10 years and extensions. However, the senior official electorates and the
leaders of allied governments have influenced rump to withdraw from
the deal this April 2018 as the costs of blowing up the deal outweigh the


The major impact of the broken deal will be on Iran,
the second largest economy in the Middle East and North Africa region after
Saudi Arabia. The Iranian economy strongly recovered in 2016, on the back of a
significant rise in oil production and exports. In 2016, the economy
registered a strong oil-based bounce back, with an annual growth rate of 13.4
percent, compared to a shrinkage of 1.3 percent in 2015. The country resumed
selling oil on international markets with $48 Bn in 2017 and using the global
financial system for trade. Iran is accessing more than $100bn in assets frozen
overseas, mainly United States. The sanctions have cost Iran more than more
than $160bn (£102bn) in oil revenue since 2012 alone. Re implementation of sanctions
will have a boomerang effect on the economy re building back itself to 2015 as
a slow economy.

Best services for writing your paper according to Trustpilot

Premium Partner
From $18.00 per page
4,8 / 5
Writers Experience
Recommended Service
From $13.90 per page
4,6 / 5
Writers Experience
From $20.00 per page
4,5 / 5
Writers Experience
* All Partners were chosen among 50+ writing services by our Customer Satisfaction Team

United States have overestimated their efforts of
managing the economy on their own. Pulling the economy out of the deal would
not only erode the integrity of the U.S, it would also deal a heavy blow to the
international nuclear non-proliferation drive, and set a bad precedent that
would surely hamper the ongoing multinational efforts at finding a peaceful
solution to the Korean Peninsula nuclear deadlock through negotiations. Worse,
the move could undermine the systems in place that monitor Iran’s nuclear
activity, and would certainly make proliferation more likely and burn all conceivable
options short of war with Iran and Korea.


A stable and integrated Iran is in
the national interest of India. With oil price splurging highs with 99.4% from
their 2016 low, imposing sanctions on Iran would affect the oil prices and
trade relations with major countries. India has been one of the few countries
doing billions of dollars of trade with Iran, despite the sanctions having been
before. Current bilateral trade between India and Iran is about $14bn with the
balance of trade heavily. Indian exports to Iran were around $4.2bn last year. Sanctions
will fuel in the current rising prices high and as India spends nearly $1
billion in import costs for every dollar increase in global crude prices
leading to negative balance of trade. Resuming restrictions on selling of oil
in international market will cut back production of oil leading to inflation
turmoil in India. Secondly, the concerns among Indian businessmen that Iran is playing
hard to get, or even turning to more competitive international players due to
opening up of the economy can rest for some while as the negotiation power has
been dragged down. Thirdly, development of Iran’s Chabahar port, which is
strategically significant as an entre-pot being the gateway to Central Asia in
providing access to Afghanistan shall ignite for early development. As Israel
and several West Asian states are at loggerheads with Iran, India must
tactfully use its diplomacy to balance its equations. With a deal that has
multi-sectoral implications for India ranging from the economic to the geographic,
it must capitalise on the opportunities from the changing fiscal policies. So
it is this unpredictability which will rear its ugly head, which is never good
for any international business and trade; the last thing India needs at a time
when its economy is in re-stabilisation mode is an increase in its oil bill.


Stringent sanctions reimplementation
destabilise the economic and security situation in Iran, which has close links
with China. The two countries have economic, trade and energy ties, with China
depending on oil imports from Iran while latter looks to China for investment,
particularly road trade and infrastructure plan. 


The Iran nuclear deal has the
potential to affect the UAE due to UAE’s economic ties to Iran and the GCC’s (
Gulf Cooperation Council) geopolitical rivalry with their neighbouring
countries. Firstly, expatriates from Dubai have made huge profits as the
commercial centre for new business ventures in Iran, adding to its role as the
centre of Middle Eastern commerce and host of scores of company headquarters.
Secondly, UAE has stood strongly with oil producing countries for aggressively
high rate and due to nuclear deal had put stress on UAE and budget deficits of
the nation. Implementation of sanctions would relief UAE’s rising pressure on
their price control through cartel.


The nuclear agreement had played a
positive role in ensuring nuclear non-proliferation and protecting peace and
stability in the Middle East for the world. President Trump’s obsession with isolating Iran could witness
the return of a far more robust mechanism of monitoring and preventing breaches
through alternatives ignored by previous administrations.






I'm Niki!

Would you like to get a custom essay? How about receiving a customized one?

Check it out