The Bright Side of the Iran Nuclear Deal

The Joint Comprehensive Plan of Action (JCPOA) is an interim deal between Iran and the UN Security Council's permanent members (P5+1), namely China, France, Russia, the United Kingdom, the United States of America plus Germany, that requires Iran to lessen its uranium deposits and centrifuges. The agreement includes the assurance of lifting nuclear-related economic sanctions on Iran which will allow economic and social development in Iran and its neighboring countries.

Prior to the agreement, Iran was isolated from international banking systems because its revenues from oil and other products were severely affected by its nuclear-related sanctions. The country’s economy was crippled by the UN Security Council sanctions as well as the economic and financial embargoes imposed on Iran's banks, insurance, investment, petrochemical, oil, gas, and automobile industries by the United States and the European Union.

Because of these sanctions, the GDP of Iran significantly decreased which led to the increase in the prices of basic commodities and the loss of employment for many Iranians. However, through the new nuclear deal, it is predicted that Iran’s GDP may increase by up to 10 percent in the next few years which will snowball into creating better living conditions and opportunities for Iran and its citizens.

In terms of international relations, if Iran is able to live up to its end of the deal, then foreign investors may bring back their trust and confidence in the country. This would pave the way for more investments and business deals that will once again be advantageous to Iran’s economy. Also, without the sanctions, Iran will be more capable of funding its oil production. This would bring Iran back as a major player in the oil market as it is expected to produce 5 percent of the international daily output of oil.

The benefits of the JCPOA are also believed to affect other countries positively. The increased oil production of Iran will increase the supply in the market and lower retail prices for consumers. Moreover, with business flourishing in Iran, neighboring countries in the Middle East will also get international attention which may lead to a more positive international view of the Middle East as a whole.

People, especially Iranians, have high hopes for the JCPOA. Experts also think that if this deal proves to be successful in the future, it can be used as a framework for other countries that still have high nuclear deposits like North Korea.