Homepage > News > The Iran nuclear deal could affect the world economy

The Iran nuclear deal could affect the world economy

Iran and the United States are close to resuming the landmark 2015 nuclear deal rejected by the Trump administration. After Russia’s invasion of Ukraine, the oil price has risen significantly, so efforts to revive the deal between Tehran and the world powers are becoming more urgent, as it could release tens of millions of barrels of Iranian oil into world markets within a few months.

Under the agreement, the United States will withdraw from sanctions on purchasing Iranian crude oil. As with the original deal, the reinstated deal should not lift the prior ban on Iranian oil imports to the US but means other countries can buy it without fear of being hit by secondary sanctions. It may take around two months for Iran to start selling crude oil on international markets when the agreement is concluded.

Sanctions on the banking sector

Prior to the sanctions, Iran’s main customers were China, India, South Korea, Japan, Turkey, Taiwan, Italy and Greece. Iran has tens of millions of barrels of oil on its tankers to be commercialized quickly. According to analysts, Iran will be able to achieve production of 3.7 million barrels per day within one year.

Sanctions imposed by the Trump administration on the Iranian banking system went beyond the pre-2015 sanctions. Most private and state-owned Iranian banks have been subject to additional sanctions. Under the new agreement, Iran would regain access to the SWIFT system.

Iran is trying to normalize relations with its neighbours

One of the key differences between this round of talks and the 2015 negotiations is that Iran has made efforts to normalize relations with its neighbours, both with Saudi Arabia and, more importantly, with the United Arab Emirates, Tehran’s important trading partner.

Saudi Arabia and the United Arab Emirates previously backed Donald Trump’s “maximum pressure” campaign on Iran. Attacks on oil shipments exacerbated the stalemate between Iran and the US, an attack on a Saudi oil plant, culminating in the murder of the most powerful Iranian general. Diplomats said restoring the deal could reduce the possibility of another escalation of the conflict and help ease divisions over regional conflicts, such as the war in Yemen.

Author: Izabela Kamionka

Are you a trader?

Help others and rate your broker! Use the search engine or find your broker on the list.

exante baner

Last news:

german economy

German Business Climate Dips, Indicating Looming Extended Recession

A successive drop in German business morale in June indicates an impending lengthier recession for ...
ropa naftowa

Nigeria’s Oil Market Faces Crisis as Half of Output Goes Unpurchased

The Nigerian oil market is currently facing a significant surplus, with nearly half of next ...
Week for Wall Street

Stock Futures Fall, Investors Eye Powell’s Testimony

Stock futures are indicating a downtrend ahead of the Federal Reserve Chair, Jerome Powell's second ...

Euro Maintains Position Despite Russia’s Drastic Reduction in Use – ECB Report

Despite Russia's significant reduction in its use, the Euro stood its ground as the world's ...

Add a comment

Your email address will not be published. Required fields are marked *


Note: Opinions and posts on ForexRev.com represent personal opinions and views of their respective authors and should not be interpreted as recommendations to purchase or sell securities. ForexRev.org assumes no responsibility or liability for such content.
Go to top