Iran reached a new landmark yesterday when together with six world powers sealed a historic accord to put an end to the Islamic Republic’s nuclear program in return for its freedom, lifting of sanctions that have hindered the nation from global transactions for years. If finally sealed, this will be the greatest breakthrough in relations in decades after two years of tough diplomacy.
According to an official involved in the talks, who asked not to be identified “diplomats reached an agreement in Vienna”. Although he didn’t elaborate on the details of the deal but many people except Israel believed it is the dawn of a new era for Iran and will further strengthen its relationship with the rest of the world.
The six world power promised to put an end to 12 years standoff over Iran’s nuclear activities that has drawn threats of military actions from U.S and Israel. Even though unconfirmed report had it that Israel has indicated its interest to lobby American law makers to reject the deal.
Analysts have said that with new flows of Iranian oil expected to hit an oversupplied Brent market, price of crude oil is expected to drop further, the global benchmark fell 2.1 percent to $56.63 a barrel as at 7:59 a.m. in London this morning.
The deal is expected to be one of President Barack Obama biggest foreign policy achievements if it survived review.
The full implementation of the agreement would take months to be actualized although it depend on the pace at which Iran meets its part of the deal.
The lifting of sanctions would enable Iran to explore fully the potential of its energy exports and access foreign financiers which is expected to open its economy to global investors. In Russia, Europe and China the deal will be welcome by corporations looking to access an untapped market of over 77 million people.
According to investment bank Renaissance Capital, Iran is an economy bigger than Thailand and oil reserves equal that of Canada but yet to be accessed by global investors, which is what makes Iran the most important market still closed to major equity investors.
Also lifting sanctions could open the stock market to investors in 2016, said Renaissance’s Charles Robertson and Daniel Salter in a report on Monday.