International sanctions against Iran have been lifted after the UN atomic watchdog announced the country had complied with the terms of last July’s landmark deal aimed at scaling down its nuclear programme.
US Secretary of State John Kerry, Iranian Foreign Minister Mohammad Javad Zarif, and other officials involved in the accord met in Vienna on Saturday as the diplomatic achievement unfolded.
The International Atomic Energy Agency (IAEA) said Tehran had put in place all nuclear measures required under the deal reached with six world powers.
Iran’s President Hassan Rouhani said it was a “glorious victory” for the “patient nation of Iran”.
“I thank God for this blessing & bow to the greatness of the patient nation of Iran,” Rouhani said on his official Twitter account.
Rouhani said the deal has “opened new windows for engagement with the world.”
Kerry said the steps taken by Tehran have fundamentally changed its nuclear programme.
“Today … the United States, our friends and allies in the Middle East, and the entire world are safer because the threat of the nuclear weapon has been reduced,” Kerry said.
EU foreign policy chief Federica Mogherini said as a result “multilateral and national economic and financial sanctions related to Iran’s nuclear programme are lifted”.
“All sides remain firmly convinced that this historic deal is both strong and fair, and that it meets the requirements of all,” Mogherini said in a joint statement.
“This achievement clearly demonstrates that with political will, perseverance, and through multilateral diplomacy, we can solve the most difficult issues and find practical solutions that are effectively implemented,” they said.
Oil exports
Iran expects to attract $30bn in investment in oil and gas fields after offering new and more attractive contracts, Zanganeh said.
Iran, which has the world’s fourth-largest oil reserves, currently exports 1.1 million barrels of crude oil per day and hopes to get back to its pre-sanctions level of 2.2 million barrels a day. The country’s total production currently stands at 3.1 million barrels per day.
Global oil prices have plunged by more than half over the last year to about $30 a barrel in recent weeks.
In the wake of falling prices, OPEC – led by Iraq and Saudi Arabia – has increased oil production and Russia’s output has also reached a post-Soviet era peak. As a consequence, global stockpiles have reached a record high.
The IMF said a resurgence in Iranian oil exports in 2016 could push crude prices down by $5-$15 per barrel.
Economic opportunities
Iran’s economy offers considerable economic opportunities for Western companies. The country is home to nearly 80 million people and is the world’s 17th most populous market.
According to the British consultancy BMI Research, demand for computers, games machines, and mobile phones will increase from $9.5bn to $13bn by 2020. Anticipating a lifting of sanctions companies – including Hewlett-Packard, General Electric, Apple and Lenovo – have all been exploring retail opportunities in Iran.
Many Iranians currently live with a shortage of basic goods and services, and the country suffers from double-digit inflation and an unemployment rate of nearly 11 percent.