5 months after the signing of the historic Iran nuclear agreement, the US and other western countries have lifted sanctions on Tehran, opening a new chapter in relations after 35 years of hostilities and offering a new opportunity for Iran to integrate into the world.
The removal of sanctions on Iran was part of the nuclear agreement signed in July, 2015, between Iran and the P5+1 group: the US, Russia, China, France, Britain, and Germany. The agreement was reached after 2.5 years of tense negotiations, ending 36 years of frozen diplomatic ties with Iran since the 1979 Islamic Revolution.
Trust created
Following an announcement by the International Atomic Energy Agency on January 16 that Tehran has complied with the nuclear agreement, US President Barack Obama signed an executive order officially lifting sanctions on Iran. Iran’s assets in the international financial system worth US$150 billion will be unfrozen, commercial flights to Iran will be allowed, and American companies will be allowed to import products from Iran.
Federica Mogherini, High Representative of the European Union for Foreign Affairs and Security Policy, said representatives of the P5+1 group have agreed to remove sanctions on Iran’s banking, steel, and shipbuilding industries and that the EU has begun the process of lifting sanctions.
The world community has applauded the efforts of all parties to honor their commitments. UN Chief Ban Ki-moon called the agreement an historic diplomatic success, which will promote stability in the region.
US Secretary of State John Kerry said this was the first step of trust building and as Iran has kept its promise the US and other western countries have no reason not to follow suit. Iranian President Hassan Rouhani called it an important victory for Iran, proving that political goodwill, perseverance, and multilateral diplomacy can solve the most difficult problems.
Iran in a new period of development?
Analysts say the removal of sanctions on Iran will help Iran become a real power in the region.
Iran has been rated a developing economy despite damages caused by the sanctions. Iran’s Human Development Index has improved and it has achieved significant growth in high-tech industries.
Iran’s investment in scientific research is higher than any other country in the Middle East. Iran’s economic growth in 2015 was 3%. Analysts say the removal of sanctions will stimulate Iran’s GDP growth and signals the return of Iranian oil producers to the global oil market. Iran’s crude oil exports are expected to increase 60% this year. With an 80-million population and an annual economic output of US$400 billion Iran will be an attractive destination for foreign investors.
Iran has an increasingly important geopolitical position in the region and the lifting of sanctions will increase its global status. The US no longer considers Iran a problematic country but a force with an important role to restore stability in the region, which will help the US address issues in the Middle East.
