The US has lifted a wide range of sanctions against Iran after the International Atomic Energy Agency confirmed that Tehran had met its commitments to roll back its nuclear programme, under an agreement with China, France, Russia, the UK, the US and Germany in July last year.
US Secretary of State John Kerry said: “Today marks the day of a safer world. This evening, we are really reminded once again of diplomacy’s power to tackle significant challenges.”
The US has only removed secondary sanctions that restrict the dealings of other countries with Iran. Primary sanctions that bar US citizens and companies from doing business with Iran will remain.
The lifting of restrictions on its oil, petrochemicals, banking, natural gas and port sectors will hugely benefit Iran and allow it to re-enter the global market.
The lifting of sanctions, which will include an end to an EU embargo on imports of Iranian oil, will also affect the global oil market, as Tehran is expected to immediately add almost half a million barrels per day to crude exports. This is likely to add to downward pressure on an oil price that is already plummeting due to oversupply.
Iranian banks will soon re-establish connections with the European financial system, and private firms can now pursue business opportunities without fear of western punishment. About $30bn of a total of $100bn in frozen assets will be released to Iran imminently.
Iran’s President, Hassan Rouhani, has hailed a “glorious victory” after senior diplomats in Vienna formally announced the lifting of sanctions against the country following confirmations from the UN that Tehran had fulfilled its obligations under last year’s nuclear accord.
