IRAN AND UNITED STATES OF AMERICA NUCLEAR DEAL

BRIEF PERSPECTIVE

1. Advanced nation's contention is that Iran is building nuclear weapons

2. Hence, international sanctions were imposed since 2006

3. But Iran insisting that its nuclear activities are entirely peaceful

4. On and off talks for 12 years, culminated with an agreement

SALIENT POINTS in Nuclear Deal

1. Iran agreed to rid of 98% of its stockpile of enriched Uranium

2. Centrifuges which are needed to enrich uranium will be reduced from 1900 to 6000

3. Enrichment will be stopped at underground Fordow facility

4. UN arms embargo will remain place for 5 years

5. Embargo on missiles will be there for 8 years

·         Permanent members of Security Council will send their Inspectors and watch up Iron in this regard.

Permanent members of Security Council  è 1. USA 2. UK 3. CHINA 4. RUSSIA 5. FRANCE  + GERMANY

What is enriched Uranium?

·         Natural Uranium consists of 99.2% of U-238 (an Isotope of Uranium) and 0.72% of U-235

·         Low enriched Uranium (Reactor Grade) which is enough for power generation is having 3-5% of U-235

·         Highly enriched Uranium (weapon grade) which is used in nuclear bombs is having 90% of U-235

Effect of Deal on the World as a whole:

·         Reduction in Oil prices

·         May future cripple Oil rich countries economy

·         Opening up of markets of Iran may benefit advanced economies

·         Reduction of Hostilations in the world

Effect of Deal on Iran:

·         Sanctions will be go away in due course of time and organisations like oil companies, shipping, airlines will benefit at the first instance

·         Resumption of Oil exports

·         Economy can again on growth path, which crippled by 20% in recent times

·         Strengths its position in Middle East

From Soudi Arabia and Israel Perspective:

·         Another power centre in middle East

·         May lead to proliferation of arms

·         Space to build nuclear arsenal

·         Create further unrest in Middle East

Iran and USA Nuclear Deal :: From Indian perspective:

·         Oil import bill may go down

·         May reduce CAD (Current Account Deficit)

·         Chabahar port may be expedited

·         Through Iran, India can get access to Central Asia

·         But, may also have to face competition from European countries in exports