The nuclear agreement has 5 main points:
In this Iran has been told to reduce the
isotope of U-235 to only 3-4% concentration. Uranium stockpile has also been
reduced from 98% to 3.67%. They have reduced the centrifuges.
is used for building heavy- water nuclear facility and the reactor contains
plutonium for nuclear bomb.
this IAEA, will continuously monitor, inspect and verify the activities of
The time has been increased by the
suggestion of the US this is because if Iran thinks to rush to make nuclear
bomb they will take substantial time.
Sanctions were imposed on Iran from US, EU
and UN which was going to be removed and it would be able to make their economy
Donald Trump wants to make changes in the deal so that Iran
couldn’t take the advantage of making a nuclear weapon. He wants a stricter
sanction for Iran’s ballistic missile program. So, he has refused to renew the
agreement which in turn made Iraq increase the price of oil. This had impact
all over the world.
Oil price is related to US dollar. They are
inversely related. If oil price increase the value of dollar depreciates and
vice-versa. With the increase or decrease of dollar, the currency of other
countries our effected.
With US not supporting the nuclear deal, the
foreign investment in Iran has reduced. Investors are not confident to invest
in Iran due to fluctuating economy.
With increase price of the oil it will affect
the US as they consume oil the most in the world. The value is around $22
million tones. Rise in the price will slowly effect and inflation could take
India is the second largest importer of crude
oil from Iran. As they have raised the price it will make Indian economy
fluctuate with increase in price of oil which in turn reduces the supply of oil
as it is more expensive.
decision with the agreement may lead to trade war. In which the US may demand
the support from India. This will put India in great trouble. If they support
Trump then this will impact the relationship between Saudi Arabia and Israel as
they are a part of GCC.
If India doesn’t support Iran then there maybe
troubles in Chabahar project. This project is between three countries Iran,
India and Afghanistan. The making of this port is necessary for exports from
other countries. It will effect India badly.
Iran is the biggest source of imported goods. If
there is no sanctions the export could grow and will be beneficial to UAE.
Dubai has potential to grow with oil price
increasing UAE has the potential to make more money and improve its economy as
Iran 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 they
couldn’t do anything in Yemen as it a costly war.
China imports the most oil after US. As there is
a rise in price it has effected it a lot as it has become expensive for them to
Silk Road initiative will also come into
limelight and it will be effected as Iran and US will be under trade war that
will result in depletion of the resources.
The only benefit China will receive is when
crude oil price reaches breakout and there is a fight between Saudi Arabia and
The conclusion is that different countries have different
effects from rise in oil price. Any change in one country will affect all the
countries. At this point of time Donald Trump is playing a big role in the
world as a whole.