Crippling economic sanctions on Iran have been lifted as the UN confirms Tehran has drastically scaled down its nuclear programme.
The move came after a remarkable day that saw the release of four dual nationals and a teenage student in a prisoner swap with the US. The Iranian-Americans were released in exchange for seven Iranian nationals held in US prisons, apparently for violating sanctions. The timing of the prisoner swap suggests that the issue had been discussed on the side-lines of the nuclear talks, despite denial from both sides.
As a result of lifting of sanctions, Iranian banks will soon re-establish connections with the European financial system, and private firms can now pursue business opportunities without fear of western punishment. About $30bn (£21bn) of a total of $100bn in frozen assets will be released to Iran imminently.
The lifting of sanctions, will also include an end to an EU embargo on imports of Iranian oil, will also affect the global oil market, as Tehran is expected to immediately add almost half a million barrels per day to crude exports. This is likely to add to downward pressure on an oil price that is already plummeting due to oversupply.
Western powers imposed sanctions on Iran over fears it was planning to use its atomic programme to develop nuclear weapons, although Tehran always maintained its nuclear ambitions were peaceful. Since 2012 these sanctions have cost Iran some $211bn in oil revenues alone. Some sanctions not linked to the nuclear deal will, however, remain in place, including European sanctions relating to human rights and US sanctions relating to terrorism.
European companies will be able to resume business with Iran and Foreign companies dealing with Iran will however no longer be punished by the US.
More broadly, the lifting of the sanctions is expected to diminish a psychological cloud in Iran, even if it is not felt immediately. Iran’s international logistics for banking and shipping and insurance was so ravaged by the sanctions that now they will be relieved and will be able to carry their business freely. It is a big step up that will lead to a growth in the economy of Iran along with the world economy.
Source: The Guardian, Skynews.
Comments
Post a Comment