IRAN NUCLEAR DEAL

1. Brief introduction2. Location of Iran3. The background of deal4. Key points5. Removal of sanctions6. Economic impact7. International reactions8. Impact on Indian economy9. Conclusion10.References

The Joint Comprehensive Plan of Action (JCPOA) known in Iran by the Persian acronym BARJAM is an international agreement on the nuclear program of Iran signed in Vienna on 14 July 2015 between Iran, the P5+1 (the five permanent members of the United Nations Security Council—China, France, Russia, United Kingdom, United States—plus Germany) and the European Union.

Where is IRAN located?

TheBACKGROUND

1. in 2002, Iran is suspected to have nuclear facilities2. Following inspections by the International Atomic Energy Agency (IAEA) and subsequent discoveries, Iran continues to proceed with nuclear developments despite international opposition.3.  In 2006, the United Nations imposed sanctions on Iran, followed by similar actions from the USA and the EU.4.These sanctions were on Iran's oil business, weapons sales and financial transactions 5.This was posing a challenge to oil prices globally, as Iran is one of the largest producers of crude oil.6. The deal ends a decade-long conflict between the world powers and Iran.

Key points

1. Increase the time it would take Iran to acquire enough material for 1 bomb from 2-3 months to at least one year.

2. Reduce Iran’s stockpiles of enriched uranium.3. Reduce no. of Iran’s installed centrifuges by two-

thirds.4. Prevent Iran from producing weapons- grade

plutonium5. Track Iran’s nuclear activity with robust transparency

and inspections6. Iran will implement the “Additional Protocol”

safeguards agreement.7. Iran’s heavy water plant at Arak will be redesigned

and rebuilt

 Iran’s four possible ways to leverage those fissile materials are blocked.

Breakout time has been extended to at least one year.

But how it can be achieved???

sanctions

• EU sanctions against a number of Iranian companies, individuals and institutions (such as the Revolutionary Guards) will be lifted.

• The U.S. will "cease" application of its nuclear-related secondary sanctions.• No new UN or EU nuclear-related sanctions or restrictive measures will be

imposed.• If Iran violates the agreement, any of the P5+1 can invoke a "snap back"

provision, under which the sanctions "snap back" into place.• Sanctions on Iran’s banking and financial systems will go away. It will enable

the immediate release of around $100 billion currently lying frozen in Iranian bank accounts overseas.

• The oil embargo preventing the import of oil from Iran will be removed.

Economic impact

• Prices of crude oil lowers without immediate impact.

• Consumer-oriented companies, in particular, could find opportunity in this country with 81 million consumers.

           International reactions

Countries like Iran, Russia, United States, United 

Kingdom, Germany, China , Italy, South Korea etc. along with United Nations 

Organizations welcomed the framework of this deal 

Benjamin Netanyahu strongly 

opposed the framework and claims that the current plan of action threatens the survival of Israel. He also wrote that “Such a deal would not block Iran’s path to the bomb. It would pave 

it.

• It will benefit oil marketing companies such as HPCL, Indian Oil and BPCL. These stocks gained 2-3.5 per cent higher

•  has negative impact for upstream companies, which weighed on shares in Cairn India and ONGC and Indian refiners.

•  benefit domestic pharmaceutical, IT and commodity firms•  Easing of sanctions in Iran will help Aban's working capital situation•  Indian companies will have to compete for consumer products ranging from clothing to cars.

• "neutral" for Reliance Industries, which operates the world's largest refinery in Jamnagar.

Impact of Iran nuclear deal on Indian economy

The Pros and Cons of such a landmark deal are debatable. Most views, claims, and allegations are often politically tuned. For now, the majority across the globe appears to be positive about the Iran nuclear dealBecause it will make the world a safer place and benefit crude oil prices and in turn gas prices globally

1. http://www.investopedia.com/articles/investing/072715/dummies-guide-iran-nuclear-deal.asp

2. https://en.wikipedia.org/wiki/Joint_Comprehensive_Plan_of_Action#Impact3. http://www.economist.com/blogs/economist-explains/2015/04/economist-explains-34. http://www.economist.com/blogs/graphicdetail/2015/07/daily-chart-iran-graphics5. http://profit.ndtv.com/news/economy/article-iran-nuclear-deal-what-it-means-for-india-781303

6. http://www.forbes.com/sites/greatspeculations/2015/06/19/how-would-the-iran-nuclear-deal-impact-oil-prices/

7. https://www.whitehouse.gov/sites/default/files/docs/jcpoa_what_you_need_to_know.pdf8. http://www.hindustantimes.com/india/iran-s-nuclear-deal-how-it-affects-india/story-OgeUy2MISxN3YHzlmJJmIM.html

9. http://www.telegraph.co.uk/news/worldnews/middleeast/iran/11739214/A-summary-of-the-Iran-nuclear-deal.html