The nuclear agreement has 5 main points:· Uranium enrichment:In this Iran has been told to reduce theisotope of U-235 to only 3-4% concentration. Uranium stockpile has also beenreduced from 98% to 3.67%.
They have reduced the centrifuges.· Plutonium pathway:Thisis used for building heavy- water nuclear facility and the reactor containsplutonium for nuclear bomb.· Covert activity:Inthis IAEA, will continuously monitor, inspect and verify the activities ofIraq. · Break-out time:The time has been increased by thesuggestion of the US this is because if Iran thinks to rush to make nuclearbomb they will take substantial time.
· Lifting sanctions:Sanctions were imposed on Iran from US, EUand UN which was going to be removed and it would be able to make their economystable.Donald Trump wants to make changes in the deal so that Irancouldn’t take the advantage of making a nuclear weapon. He wants a strictersanction for Iran’s ballistic missile program. So, he has refused to renew theagreement which in turn made Iraq increase the price of oil.
This had impactall over the world.Global impact:· Oil price is related to US dollar. They areinversely related. If oil price increase the value of dollar depreciates andvice-versa.
With the increase or decrease of dollar, the currency of othercountries our effected.· With US not supporting the nuclear deal, theforeign investment in Iran has reduced. Investors are not confident to investin Iran due to fluctuating economy.· With increase price of the oil it will affectthe US as they consume oil the most in the world. The value is around $22million tones. Rise in the price will slowly effect and inflation could takeplace. India:· India is the second largest importer of crudeoil from Iran. As they have raised the price it will make Indian economyfluctuate with increase in price of oil which in turn reduces the supply of oilas it is more expensive.
· USdecision with the agreement may lead to trade war. In which the US may demandthe support from India. This will put India in great trouble. If they supportTrump then this will impact the relationship between Saudi Arabia and Israel asthey are a part of GCC.· If India doesn’t support Iran then there maybetroubles in Chabahar project.
This project is between three countries Iran,India and Afghanistan. The making of this port is necessary for exports fromother countries. It will effect India badly.UAE:· Iran is the biggest source of imported goods. Ifthere is no sanctions the export could grow and will be beneficial to UAE.
· Dubai has potential to grow with oil priceincreasing UAE has the potential to make more money and improve its economy asIran is helping them with the rise in the price of oil.· GCC consists of Qatar, Saudi Arabia, UAE,Kuwait, Oman and Bahrain. GCC holds strong advantage against Iran when theycouldn’t do anything in Yemen as it a costly war.
China:· China imports the most oil after US. As there isa rise in price it has effected it a lot as it has become expensive for them topurchase.· Silk Road initiative will also come intolimelight and it will be effected as Iran and US will be under trade war thatwill result in depletion of the resources.· The only benefit China will receive is whencrude oil price reaches breakout and there is a fight between Saudi Arabia andIran. The conclusion is that different countries have differenteffects from rise in oil price. Any change in one country will affect all thecountries.
At this point of time Donald Trump is playing a big role in theworld as a whole.