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Home›Headline news›How the Lifting of American Sanctions Against Iran is Changing the Middle East

How the Lifting of American Sanctions Against Iran is Changing the Middle East

By admin
May 19, 2016
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The nuclear deal that saw the lifting of sanctions against Iran is already changing the region. Some of these changes are very positive, but there will be cause for concern in some sectors too. Here are the key changes that are being affected by the deal in the Middle East today.

Concern for the Sunni Gulf States

The lifting of sanctions will end the isolation of the country. This will allow the country to play a more prominent role on the global stage. That might sound like good news, and it is for Iran. But it’s something that the country’s neighbors are increasingly concerned about. The Sunni Gulf States have always opposed Iran, and they don’t approve of anything that gives them more prominence. This could result in cooler relations between America and countries like Saudi Arabia.

Nuclear Disaster Potentially Averted

The countries involved in negotiating the deal with Iran argue that it is was necessary to avert a nuclear crisis. This deal should block Iran from pursuing their nuclear program though. There are critics, such as the Israeli government, who say that the deal will make Iran more likely to get nuclear weapons. They say that the improved economy will make the country more difficult to control. But those on the other side say that the need for a deal that stopped Iran’s nuclear program was urgent.

A Big Economic Boost for Iran

The Iranian economy is now open to global trade and finance in a way that it never was before. This is because the sanctions blocked many investors and banks from doing business in Iran. This will give the Iranian economy a massive boost going forward. It could create more jobs and make the economy in general more diverse and more healthy. This is the main reason why the Iranian regime was so keen to do the deal that would see the sanctions removed.

A New Era in US-Iran Relations

One of the key ambitions of Obama’s second term as President has been to improve relations with foreign countries. Two nations that were previously hostile have now been reached out to. The President’s recent visit to Cuba was a huge step forward. As was the nuclear deal with Iran. It’s hoped that this deal will prove to be fruitful for both sides. Although there are figures, such as the head of the FDD, Mark Dubowitz, who criticize the deal. One thing’s for sure; it’s a new era for US-Iran relations.

More Iranian Oil on the Market

One of the big impacts on regional and global economics after the nuclear deal was the Iranian oil hitting the markets. With many of the sanctions gone, Iran was free to sell oil to European nations. The production and sales of Iranian oil are already starting to increase, and this is something that will only grow. This could cause even more tension with the Gulf states though because they have been dominant in the oil market in recent years. It’s a reality that they will have to come to terms with though.

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