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What is the Iran nuclear deal?July 2015, Britain, China, France, Russia and the United States, Germany agreedwith Iran on a deal to prevent Tehran from building anuclear bomb. In exchange, certain international sanctions that have been inplace against Iran for years would be lifted. The sanctions relief led to Iranreceiving billions of dollars in unfrozen funds and opened its markets back upto many foreign investors.The Joint Comprehensive Plan of Action took yearsto negotiate and was endorsed by a United Nations Security Council resolution,solidifying it as international law. It went into effect in January 2016.

theIAEA, are in charge of monitoring Iran’s compliance. The parties alsoestablished a Joint Commission to monitor implementation and handle disputes. According to this framework, Iranwould redesign, convert, and reduce its nuclear facilities and accept theAdditional Protocol in order to lift all nuclear-related economical sanctions,freeing up billions of dollars in oil revenue and frozen assets.

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  Key Points of the Iran Nuclear Deal·       Iran will reduce stockpile of low-enriched uraniumby 98 percent to 300 kg for 15 years·       Iran will reduce by two-thirds the number ofcentrifuges operating to enrich uranium at its main processing center·       Iran is prevented from designing warheads orconducting experiments on nuclear weapons-related technology.·       Arms embargo on Iran will be eased, as long as IAEAjudges Iran’s nuclear program to be peaceful.·       International sanctions on Iran will be lifted, enablingit to export oil.·       If an international panel finds Iran is nothonoring the accord, it can vote to restore sanctions. Under the IranNuclear Agreement Review Act of 2015 (INARA), the U.

S. president had to certifyto Congress every 90 days that Tehran is abiding by the provisions of the deal.Four criteria that had to be complied with were:1. Iran is transparently and verifiably fully implementingall parts of the deal2.

 Iran has not committed a material breach of theagreement3. Iran has not taken any action, including covertactivities, that could significantly advance its nuclear weapons program4. Suspension of Iran-related sanctions areappropriate and proportionate to measures taken by Iran to terminate itsnuclear program and are vital to U.S. national security interestsAfter President Trump,refused to certify Iran’s compliance of terms of the Nuclear Agreement reachedwith Iran jointly by Russia, EU and America and re-imposed sanctions on Iran.The following are the repercussions which affected the whole world.1)Isolationof the United States from its alliesFirst and fore most impact of the decertification came as a hit to therelationship of USA with its allies. the sanctions imposed on Iran has madeIran sprinting toward nuclear weapons, and increase the likelihood of militaryconflict.

Owing to the derailment of trust between various nations the dollarvalue was hit and has caused a surge in the oil prices due to its indirectcorrelation with the American dollar. 2) Worriesabout North KoreaThe decertification and withdrawal derailed diplomatic efforts to get the NorthKoreans to come to the negotiating table to give up their nuclear program.Non attachment of USA to the Iran agreement sent a very problematic signal toNorth Korea and shook the very ground to get into a political discussion with apolitical solution on North Korean issues.NorthKorea and Iran have had a decades-long missile relationship as well ascooperation on nuclear weapons development. The two countries also likelyclosely followed each other’s negotiations to curtail their nuclear ambitions.Unfortunately, they learned that alternating provocative behaviour and aperceived willingness to negotiate enabled them to manipulate the internationalcommunity into timidity about imposing penalties and acquiescence to repeatedviolations. By maintaining strategic ambiguity on their nuclear programs, NorthKorea and Iran are gaining international acceptance of activities that were previouslydeclared “unacceptable.

”  By this move ofTRUMP all the efforts closed the doors to have any kind of mutual solution toNorth Korean. It has frayedU.S.-European relations and dash hopes, of a diplomatic resolution to thestandoff over North Korea’s rapidly developing nuclear-weapons arsenal.3.The impact on companies investing inIranian energyTrump’sdecision adds to political risk of doing business in Iran, which was alreadyhigher than many other resource-rich countries. It could choke off the foreigninvestment Iran needs to rehabilitate aging energy assets and boost oiland gas production. The U.

S. has the tools to punish energy companies doingbusiness with the Islamic Republic, as many have operations in the U.S. and usedollars to pay for equipment and contractors. Energy companies will probablyhave to do “a lot of extra due diligence before committing to any deal.

energyproducers, however, the administration’s more confrontational approach doesraise the risk of doing business in the Middle Eastern nation. Companies suchas Total SA, which in July became the first major Westernenergy company to sign a production deal with Iran since the 2015 accord,may face new hurdles in contributing to the country’s estimated $100 billionneed for oil and natural gas investment. 4)Impact of surging oil prices on ChinaThedemand for oil in China has dramatically increased. China is the second largestconsumer of oil in the world behind the United States. This growing demand inoil comes in a context of steep international price hikes for oil.

With itsincreasing oil consumption, China today plays a major role on the internationaloil markets, and a change in its consumption has seriously destabilized thesemarkets. owing to the increase in oil prices to 80$ a barrel, the cost of production has increased sinceChina is worlds production market. There can be even a possibility that Yuanvalue surges and it can present itself as the Gen Next Petro currency. SinceChina is the largest exporter of oil in the world.

China imports 11 billionbarrels a day and surge in oil prices has caused an increase in cost of importhence disturbing the balance of trade in China.5) More conflict in the middle eastIran’sgas reserves are the world’s largest and almost four times the size ofU.S. deposits. Iran has raised oil output since sanctions were eased in January2016, and it’s seeking to boost production capacity.Trump’s position has curbed the enthusiasm of European and some Asiancorporates for following through with plans to invest in the Iranian upstreamsector. This has forced foreign refineries to source less crude from Iran,especially the threat of being locked out of U.S.

capital markets. This willbring UAE at advantage position and will increase the cold conflict which hasbeen prevalent since centuries between the Arab nations.  6) Effects on USAOwing to a surge in oil prices U.

S.gross domestic product will fall costing the economy billions. This is enoughto send the country into recession.US exports get better and imports get expensive since they pay more dollarsfrom same products. Cost of living goes up, demand comes down so evenproduction is reduced, unemployment. Technology will enhance which will lead tosearch in alternative of combustion oil and there will be boost in electriccars.US is a debt economy, because of that people won’t be able to pay off theirloans.

SLR reduce to infuse money to banks. Bond prices increase, treasury billwill become expensive, LIBOR will increase. it is likely to increase 100 basepoints, to meet their liquidity requirements. Credit facilities of banks willbe low. Land and real estate prices crash which causes slowing of economy, nogrowth of sectors.

Overall it will cause depression in US economy. Also, sheiloil production is high owing to more demand so when, overall the dollar fallsand other currencies rise. 7)Effects on India                                                                                                    Indiaimports 4 billion barrels a day, India is backward in electronic and automobileindustry so there will be higher govt expenditure in stated sectors. Loweremployment higher crime rates. Rising oil priceswill lead to a deteriorating current account deficit for India.

Inflation willhit the balance of trade in a negative way owing to lower reservesWhat is the Iran nuclear deal?July 2015, Britain, China, France, Russia and the United States, Germany agreedwith Iran on a deal to prevent Tehran from building anuclear bomb. In exchange, certain international sanctions that have been inplace against Iran for years would be lifted. The sanctions relief led to Iranreceiving billions of dollars in unfrozen funds and opened its markets back upto many foreign investors.The Joint Comprehensive Plan of Action took yearsto negotiate and was endorsed by a United Nations Security Council resolution,solidifying it as international law. It went into effect in January 2016. theIAEA, are in charge of monitoring Iran’s compliance.

The parties alsoestablished a Joint Commission to monitor implementation and handle disputes. According to this framework, Iranwould redesign, convert, and reduce its nuclear facilities and accept theAdditional Protocol in order to lift all nuclear-related economical sanctions,freeing up billions of dollars in oil revenue and frozen assets.  Key Points of the Iran Nuclear Deal·       Iran will reduce stockpile of low-enriched uraniumby 98 percent to 300 kg for 15 years·       Iran will reduce by two-thirds the number ofcentrifuges operating to enrich uranium at its main processing center·       Iran is prevented from designing warheads orconducting experiments on nuclear weapons-related technology.·       Arms embargo on Iran will be eased, as long as IAEAjudges Iran’s nuclear program to be peaceful.·       International sanctions on Iran will be lifted, enablingit to export oil.·       If an international panel finds Iran is nothonoring the accord, it can vote to restore sanctions. Under the IranNuclear Agreement Review Act of 2015 (INARA), the U.

S. president had to certifyto Congress every 90 days that Tehran is abiding by the provisions of the deal.Four criteria that had to be complied with were:1. Iran is transparently and verifiably fully implementingall parts of the deal2. Iran has not committed a material breach of theagreement3. Iran has not taken any action, including covertactivities, that could significantly advance its nuclear weapons program4. Suspension of Iran-related sanctions areappropriate and proportionate to measures taken by Iran to terminate itsnuclear program and are vital to U.S.

national security interestsAfter President Trump,refused to certify Iran’s compliance of terms of the Nuclear Agreement reachedwith Iran jointly by Russia, EU and America and re-imposed sanctions on Iran.The following are the repercussions which affected the whole world.1)Isolationof the United States from its alliesFirst and fore most impact of the decertification came as a hit to therelationship of USA with its allies. the sanctions imposed on Iran has madeIran sprinting toward nuclear weapons, and increase the likelihood of militaryconflict. Owing to the derailment of trust between various nations the dollarvalue was hit and has caused a surge in the oil prices due to its indirectcorrelation with the American dollar. 2) Worriesabout North KoreaThe decertification and withdrawal derailed diplomatic efforts to get the NorthKoreans to come to the negotiating table to give up their nuclear program.

Non attachment of USA to the Iran agreement sent a very problematic signal toNorth Korea and shook the very ground to get into a political discussion with apolitical solution on North Korean issues.NorthKorea and Iran have had a decades-long missile relationship as well ascooperation on nuclear weapons development. The two countries also likelyclosely followed each other’s negotiations to curtail their nuclear ambitions.Unfortunately, they learned that alternating provocative behaviour and aperceived willingness to negotiate enabled them to manipulate the internationalcommunity into timidity about imposing penalties and acquiescence to repeatedviolations. By maintaining strategic ambiguity on their nuclear programs, NorthKorea and Iran are gaining international acceptance of activities that were previouslydeclared “unacceptable.”  By this move ofTRUMP all the efforts closed the doors to have any kind of mutual solution toNorth Korean. It has frayedU.S.

-European relations and dash hopes, of a diplomatic resolution to thestandoff over North Korea’s rapidly developing nuclear-weapons arsenal.3.The impact on companies investing inIranian energyTrump’sdecision adds to political risk of doing business in Iran, which was alreadyhigher than many other resource-rich countries. It could choke off the foreigninvestment Iran needs to rehabilitate aging energy assets and boost oiland gas production. The U.S. has the tools to punish energy companies doingbusiness with the Islamic Republic, as many have operations in the U.

S. and usedollars to pay for equipment and contractors. Energy companies will probablyhave to do “a lot of extra due diligence before committing to any deal. energyproducers, however, the administration’s more confrontational approach doesraise the risk of doing business in the Middle Eastern nation. Companies suchas Total SA, which in July became the first major Westernenergy company to sign a production deal with Iran since the 2015 accord,may face new hurdles in contributing to the country’s estimated $100 billionneed for oil and natural gas investment. 4)Impact of surging oil prices on ChinaThedemand for oil in China has dramatically increased. China is the second largestconsumer of oil in the world behind the United States. This growing demand inoil comes in a context of steep international price hikes for oil.

With itsincreasing oil consumption, China today plays a major role on the internationaloil markets, and a change in its consumption has seriously destabilized thesemarkets. owing to the increase in oil prices to 80$ a barrel, the cost of production has increased sinceChina is worlds production market. There can be even a possibility that Yuanvalue surges and it can present itself as the Gen Next Petro currency. SinceChina is the largest exporter of oil in the world.

China imports 11 billionbarrels a day and surge in oil prices has caused an increase in cost of importhence disturbing the balance of trade in China.5) More conflict in the middle eastIran’sgas reserves are the world’s largest and almost four times the size ofU.S. deposits. Iran has raised oil output since sanctions were eased in January2016, and it’s seeking to boost production capacity.Trump’s position has curbed the enthusiasm of European and some Asiancorporates for following through with plans to invest in the Iranian upstreamsector. This has forced foreign refineries to source less crude from Iran,especially the threat of being locked out of U.

S. capital markets. This willbring UAE at advantage position and will increase the cold conflict which hasbeen prevalent since centuries between the Arab nations.

 6) Effects on USAOwing to a surge in oil prices U.S.gross domestic product will fall costing the economy billions. This is enoughto send the country into recession.US exports get better and imports get expensive since they pay more dollarsfrom same products. Cost of living goes up, demand comes down so evenproduction is reduced, unemployment. Technology will enhance which will lead tosearch in alternative of combustion oil and there will be boost in electriccars.

US is a debt economy, because of that people won’t be able to pay off theirloans. SLR reduce to infuse money to banks. Bond prices increase, treasury billwill become expensive, LIBOR will increase. it is likely to increase 100 basepoints, to meet their liquidity requirements. Credit facilities of banks willbe low. Land and real estate prices crash which causes slowing of economy, nogrowth of sectors. Overall it will cause depression in US economy.

Also, sheiloil production is high owing to more demand so when, overall the dollar fallsand other currencies rise. 7)Effects on India                                                                                                    Indiaimports 4 billion barrels a day, India is backward in electronic and automobileindustry so there will be higher govt expenditure in stated sectors. Loweremployment higher crime rates. Rising oil priceswill lead to a deteriorating current account deficit for India. Inflation willhit the balance of trade in a negative way owing to lower reserves

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