President Donald Trump of United States of America has finally abandoned the Iranian Nuclear Deal thereby completely ignoring European allies. The decision has stepped up the possibility of conflict with the Middle East and casting an uncertain spell on global oil prices. President Trump has stated that the US will reimpose economic sanctions on Iran to dismantle the worst one-sided deal which has been ever made.
The Joint Comprehensive Plan of Action which had been worked out by the US and signed by 5 major world powers with Iran had lifted the economic sanctions on Iran in return for Tehran’s commitment to limit its nuclear program. The main aim of the pact was to prevent Iran from developing a nuclear bomb by further enriching its uranium to weapons grade.
Trump administration was not happy about the deal as it did not address the ballistic missile program of Iran, its growing influence in Yemen and Syria and also the future of the deal after 2025. The Sunset clauses were a major put-off for Trump.
European allies of US had been pressing Trump to honour the deal as it would lead to worst consequences for the region. The recent announcement will also have a significant impact on the trans-Atlantic alliance of US 16 months down the Trump Presidency. The latter had however kept the possibility of further talks with Iran open and is also open to negotiating a new deal with Iran- a possibility which has been completely ruled out by Iran.
Britain, Germany, France, China and Russia- the nations who are signatories to the deal have released a joint statement and said that the decision by the Trump administration is a serious cause for regret and concern. The recent decision is another consequential step in line with the high-stakes “America-First” policy which has already led the US to withdraw from major agreements of the world like Asian-Pacific Trade Deal, Paris Climate Pact etc. The decision has thus reinforced the influence of recent hawks like Bolton and Pompeo on the administration thus giving a clear message to the world.
Iranian President Hassan Rouhani has expressed regret over the decision and has stated that Iran will continue to honour the deal despite the US being a part of it as the latter can tilt the balance of power in favour of some hardliners which are working with the aim to stop Iran from opening to the Western world. Iran has complied with the provisions of the Deal and has repeatedly stated that its nuclear program is aimed at peaceful purposes. US inspectors and officials have also said on many occasions that Iran has been technically complying with the Deal.
The recent decision which will reimpose economic sanctions on Iran will make it harder for the nation to sell its oil in international markets or make use of the international banking system. Iran is the third-largest oil exporting nation and pumps nearly 3.8 million barrels of oil in a day which is just under 4 percent of global supply. The major buyers of Iranian oil are China, India, Japan and South Korea.
Former President Obama has said that the recent decision of the Trump Presidency is misguided.