Iran Nuclear Deal: A Complete Overview

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Today we are presenting an article with you on 'US Withdrawal from 2015 Iran Nuclear Deal'. Must read this article to know how this affects the world and why India is concerned? The article will help you in preparing for the descriptive test for upcoming exams like SBI PO 2018 Exam.

'US Withdrawal from 2015 Iran Nuclear Deal'

With the statement “We cannot stop an Iranian bomb under the decaying and rotten structure of the current agreement” in the White House, American President Donald Trump announced the separation of United States from the 2015 landmark nuclear deal with Iran.

US President Donald Trump from the White House further said that this agreement is faulty from within. This distressing agreement gave millions of dollars to Tehran but could not stop it from making nuclear weapons. He would reimpose U.S. economic sanctions on Iran to challenge "a horrible one-sided deal”.

At the same time, European diplomats said that Trump was completely unsuccessful in celebrating not to break this agreement. Western powers are committed to the Iran nuclear deal. In a joint statement, the UK, France and Germany, which were signatories to the deal along with China and Russia said that Trump’s decision was a cause for regret and concern.

This decision of Trump has proved to be a major setback for the European Union's efforts, which was involved in saving this agreement. That is why some European countries have talked about the continuation of trump by Trump despite the cancellation of the nuclear deal with Iran.

Under this agreement, Iran had agreed to stop its nuclear program, and in turn, eased economic restrictions on Iran's long-standing sanctions.

What is the nuclear deal?

In July 2015, Iran and six countries (a group of world powers: the P5+1) reached a historic agreement called the Joint Comprehensive Plan of Action (JCPOA), popularly known as the Iran nuclear deal. It was viewed as the key foreign policy achievement of Barack Obama's administration.

P5+1 are the permanent members of the United Nations Security Council—the United States, the United Kingdom, Russia, France, and China—plus Germany and the European Union.

The deal came together after two years of intense discussions and aimed to restrict Iran's ability to develop nuclear weapons in exchange for lifting economic sanctions against Tehran.

In 2015, the P5+1 countries and Iran agreed on a framework for a deal. According to the agreement -

Iran would redesign, convert and reduce its nuclear facilities.
accept the additional protocol.
freeing up tens of billions of dollars in oil revenue and frozen assets.
agreed to reduce its stockpile of enriched uranium by 98% and limit uranium enrichment to 3.67%.
preventing Iran from constructing a nuclear weapon, involved lifting of international sanctions in return for Tehran curbing its nuclear programme.

On 18 October 2015, the JCPOA adopted by the participant countries and began to take necessary steps to implement their JCPOA commitments. On 16 January 2016 was the JCPOA was implemented.

Iran agreed to give access to inspectors from the International Atomic Energy Agency (IAEA), the UN's nuclear watchdog agency, to its nuclear facilities, among other facilities. IAEA keeps an eye on have consistently verified that Iran is complying with the terms of the deal and in January 2016 all nuclear-related international sanctions against Iran were lifted.

How this affects the world?

1. The tensed relation between Iran and US ally’s- Stress on the relations between Iran and US allies in the region.

2. Crude oil prices- Iran is the third-biggest producer among the Organization of the Petroleum Exporting Countries (OPEC). It produces about 3.8 million barrels per day (bpd), or about 4.0 percent of the world's oil supplies. Due to the announcement, crude oil prices jumped back to near 3 1/2-year highs. Iran may be subjected to economic sanctions, which will put pressure on global oil companies not to buy oil from Iran.

3. Global stock markets (GSM)- GSM were weakened with Asian equities edging lower as renewed US sanctions on Tehran were seen as distracting for many companies that have deals with Iran.

4. US sanctions could affect various industries- As the tensions between Iran and US could affect the various industries. Emerging stock, bond markets and currency markets would be at risk after the US announcement.

5. Nearly US states such as India have entered into an agreement with Iran, which will come into controversy with Trump's decision.

Why the US withdraw from the deal?

Donald Trump said before the presidential election to dismantle the unfortunate deal with Iran. According to the Trump, this agreement could force Tehran to violate first or make the deal unnecessary.

He believes that it is a bad deal. The deal did not target Iran’s regional behaviour or its missile programme.
The agreement did not have any provision for Iran’s nuclear activities beyond 2025.
Iran has its role in conflicts in Yemen and Syria.

Why is India concerned?

After Iraq and Saudi Arabia, Iran plays the role of third-largest oil supplier to India.
India is developing the Chabahar port with Iran to invest 20 Billion US dollars.
The Chabahar Port will give it access to the oil and gas resources in Iran and the Central Asian states.
Behind this, India’s target is to compete with the Chinese, who are building Gwadar Port, in Pakistani Baluchistan.
The Ship, rail, and road route for moving freight between India, Russia, Iran, Europe and Central Asia are the North-South Transport Corridor. It involves movement from India, Iran, Azerbaijan and Russia.
Its aim is to increase trade connectivity between major cities such as Mumbai, Moscow, Tehran, Baku, Bandar Abbas, Astrakhan, Bandar Anzali and etc.
8,000 Iranian students are studying in India. ITEC, ICCR, Colombo Plan and IOR-ARC schemes are the educational schemes provided by India.
These schemes provide 67 scholarships every year to Iranian students.

Iran’s reaction to the US President’s announcement

According to the Iran President Hassan Rouhani "If we achieve the deal's goals in co-operation with other members of the deal, it will remain in place." This announcement will create some difficulties for Iran. Rouhani said that Iran wants to work with the rest of the world and is connected completely to the world.

No clear evidence of the violation of the deal against Iran

US President Donald Trump made the allegation on Iran, but he didn’t present any evidence that Iran is technically in violation of the deal. Supporters of Trump’s decision, chiefly Israel and Saudi Arabia also didn’t present any evidence. Iranians are angry with the Saudi Arabia’s leaders, who they believed played a significant role in Trump’s decision.

End of Deal?

Trump’s decision cannot decide the fate of the deal. It is not the end. Officially, the Iran nuclear deal was a two-year-long diplomatic initiative between the Islamic Republic of Iran and a group of world powers: the P5+1(the US, Britain, France, Russia, China, and Germany). So, US withdrawal doesn’t mean the ‘end of a deal’.-

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