Iran Nuclear Deal

Negotiations between Iran and the five permanent members of United Nations security council and Germany, famously referred as P5+1, began in 2006. These negotiations were done to make sure that Iran do not enrich uranium in large scale and make nuclear weapons. On the other hand Iran wanted to enrich the uranium for the civil energy purpose. During the period when negotiations reached an impasse the United States, the European Union imposed some sanctions on Iran. However change in government in Iran made the deal between the two groups a possibility. After several rounds of negotiations, on 24 November 2013, the Joint Plan of Action, an interim agreement on the Iranian nuclear program, was signed between Iran and the P5+1 countries in Geneva, Switzerland. This plan of action included short term freezing of Iran’s nuclear program and in exchange economic sanctions on Iran would be reduced.

In July 2015 a historic agreement between Iran and a group of six nations led by US has been reached. This agreement has potential to transform the geopolitical dynamics. This deal would remove the isolation of Iran from world community. This deal will have major impact on the US relations with countries like Saudi Arabia and Israel. International negotiators assembled in Austria have announced the final terms of the Iranian nuclear deal. Major points in the deal are as given below:

• Iran will reduce its stockpile of low-enriched uranium by 98 percent to 300 kg for 15 years;

• Iran can only use first-generation IR-1 centrifuges, and has to give up other models;

• Iran will also reduce number of centrifuges operating at its primary processing center in Natanz. Centrifuges number would be reduced by two third to 5060;

• another 1,000 centrifuges at Fordow are been allowed;

• Iran will be allowed to enrich uranium to only to 3.67 percent;

• Iran must fulfill its initial commitments by mid-October, after which the International Atomic Energy Agency will verify Iran’s compliance by mid-December. Once it has verifiably fulfilled its commitments, the United States, European Union, and United Nations Security Council will begin to remove their nuclear-related sanctions on Iran;

• If one of the parties to the deal believes Iran is violating the deal, they can submit a complaint to an eight-member panel (consisting of the US, UK, France, Germany, Russia, China, and Iran itself, as well as the EU) for review;

• If Iran is judged not to be living up to accord sanctions could snap back;

This deal has benefits for both the parties to the deal as well as for other countries like India. Once sanctions are removed Iran would be allowed to trade the oil and India being an oil importer country will get huge benefit. This deal will help Iran come out of economic isolation and deal is great for countries economy.

Major benefits of deal are:

• It will unlock 100 billion dollars in frozen funds;
• end of arms embargo for Iran;
• Iran will be allowed to trade the oil again. Bar on exporting the oil has shrunk the economy of Iran by about 20 percent;
• analyst believe deal will lead to reduction in oil prices;
• India will be allowed to freely trade with Iran in oil. Refinery company will get benefit from this;
• OIl companies can get exploration rights in Iran oil fields.
• Apart from that India will get strategic benefits by engaging with Iran;
• Iranian President Hassan Rouhani has asked India to invest in infrastructure projects worth $8 billion, including an expanded role in developing a strategic chahbar port that will open up access to Central Asia.

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