14
Jul

The historic deal between Iran and world powers reportedly reached on July 14 in Vienna has paved the way for international sanctions against Tehran to be lifted in exchange for limits on its nuclear activities. While the six powers have said the deal will slow Tehran’s ability to acquire a nuclear weapon, the accord could also have other far-reaching ramifications linked to Iran’s possible reintegration into the global community.

From potentially stoking a Middle East arms race, to enabling political reforms in Iran, to undercutting Russia’s energy might by freeing up massive oil and gas supplies, here are some possible implications of the agreement.

‘Destabilizing’ Factor?

The prospect of a prospering Iran has sparked concern among skeptics of the nuclear deal — and even some U.S. officials who back it — that Tehran could use this financial windfall to destabilize the already volatile Middle East.Sanctions relief could allow Iran to repatriate more than $100 billion in oil revenues currently frozen overseas , and some experts estimate that sanctions relief could help Iran’s $420 billion economy grow by 5 percent to 8 percent annually.

“We are, of course, aware and concerned that, despite the massive domestic spending needs facing Iran, some of the resulting sanctions relief could be used by Iran to fund destabilizing actions,” The Daily Beast quoted a U.S. State Department official as saying in a July 8 report. 

However, Mohsen Milani, the executive director of the Center for Strategic & Diplomatic Studies at the University of South Florida, told RFE/RL that the deal could be a “transformative event” in the Middle East because it opens the door to better ties between Iran and the West, which could reduce tension in the region.

Richard Nephew, who served as the State Department’s principal deputy coordinator for sanctions policy and as director for Iran at the National Security Council, argues that fears that Iran will use money from sanctions relief to bankroll its regional ambitions are overblown.

“Iran’s domestic economic needs are real, as is [President Hassan Rohani’s] imperative to deliver on the promises that got him elected,” Nephew wrote earlier this month. “To ensure the stability of their government, Iran’s leaders must tend to the problems at home and make the investments necessary to sustain their future. Supporting Syrian President Bashar al-Assad and other regional actors is an important, but secondary, objective.” 

Shifting Alliances

The U.S. push for the nuclear deal with Iran has also raised fears among Sunni-dominated Arab states that Washington, their traditional guarantor, is essentially stepping back to allow Shi’ite Iran free rein in the region. Amid these concerns, Gulf Arab states are increasingly talking about diversifying their international alliances.

“[U.S. President Barack] Obama is going to be remembered as the U.S. president who restored relations with Iran. But he may also be remembered as the U.S. president who lost his traditional allies in the region,” Sami al-Faraj, a Kuwaiti security adviser to the Gulf Cooperation Council (GCC), told Reuters in June. Read more…

Written by By Carl Schreck and Golnaz Esfandiari

Published on July 14th in http://www.rferl.org/

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