Iran reentered the global economy as years of crippling international sanctions ended in exchange for the verified disabling of much of its nuclear infrastructure. Earlier, Iran sent a major shipment of low-enriched uranium materials to Russia, a key step in Tehran’s implementation of historic nuclear agreement with world powers.
The United States and European nations lifted oil and financial sanctions on Iran on 16th of this month and released roughly $100 billion of its assets after international inspectors concluded that the country had followed its promises to abolish large sections of its nuclear program. Some of those sanctions apply to Iran’s ballistic missile program, and the Obama administration has come under sharp criticism from lawmakers for not imposing new restrictions on Iran over its test firing of missiles.
Iran’s President Hassan Rouhani has briefed that the lifting of sanctions against country as “historic” and a “great victory”, declaring that the country is now reopening its doors to the international economy.
Iran reenters world economy – global impacts
The shale revolution in the United States has dramatically altered the global energy landscape. With the introduction of Iran into oil exporting, already plunged crude oil price will be lowered again. So the oil importing countries like India benefits from the lifting of sanctions on Iran. Iran is prepared to start shipping crude oil to old business partners in Europe and India with the United Nation gave a clean chit to Tehran’s nuclear program.
Those share markets which are dominated by energy firms, who fear that oil will fall further from its current 12-year low of $28 when Iran resumes oil exports, experiencing tough situation. Although Gulf nations are petroleum-based economies, listed companies in most sectors were down. It is because Iran is now expected to be the main beneficiary of billions of dollars of new investment from the West – money which was spent in other Gulf nations previously.
China’s crude oil imports are expected to rise in 2016. However, the slowing Chinese economy is a creating a big crack in the global crude oil market. Demand is expected to be weak in Europe due to the slowing European economy and a warmer-than-normal winter. So experts say that oil price might fall below $20 per barrel in the coming months.