By end of the year its exports may increase by a million barrels a day; this would add to the current glut in the market.
Washington/Vienna : Iran can now join the world economy. UN inspectors have concluded that Tehran has complied with a historic deal to cap its nuclear ambitions: this, in turn, has paved the way for the US and the EU to lift the stinging oil and financial sanctions on Iran and unblocking of $ 100 billion of its frozen assets.
The lifting of US sanctions on Iran will have far-reaching ramifications as it has the fourth largest oil reserves in the world. Iran will be now free to export the oil, its ships will be able to enter and leave foreign ports, and its people will have access to global financial markets. According to some estimates, by the end of the year its exports may increase by a million barrels a day; this could further aggravate the crude glut in the market, depressing the prices further.
Hours before the nuclear accord was implemented, five Americans, including a Washington Post reporter, were released by Iran. The detention of one of the released Americans, who had been engaged in language studies in Tehran when he was arrested, had never been publicly announced.
The release of the “unjustly detained” Americans came at some cost: Seven Iranians, either convicted or charged with breaking American embargoes, were released in the prisoner swap, and 14 others were removed from international wanted lists.
Iran has various obligations under the nuclear agreement. These include slashing by two-thirds its uranium centrifuges, reducing its stockpile of uranium and removing the core of the Arak reactor which could have given Iran weapons-grade plutonium.
Under the new rules put in place, the US will no longer bar foreign individuals or firms from buying oil and gas from Iran. The American trade embargo remains in place, but the government will permit certain limited business activities with Iran, such as selling or purchasing Iranian food and carpets and American commercial aircraft and parts.
President Obama and Secretary of State Kerry, with just over a year left in office, are also hoping to foster new discussions that will bear fruit in other areas, including ending the war in Syria and moving, slowly, to the eventual restoration of diplomatic relations, The New York Times said.
“Today marks the day of a safer world,” Kerry said in Vienna as the International Atomic Energy Agency certified that Iran has fulfilled its promises to world powers under a July 14 deal.
But Fresh Military Curbs
Hours after international nuclear sanctions on Iran were lifted as part of a deal hailed by President Barack Obama, the US has imposed fresh sanctions on Iranian companies and individuals over a recent ballistic missile test. The new sanctions prevent 11 entities and individuals linked to the missile programme from using the US banking system. The message is loud and clear: the economic sanctions have been waived but military curbs will stay. In remarks shortly before the US announcement, Iran’s President Hassan Rouhani said that any new American sanctions would be “met by an appropriate response.”
