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Oil price evaporates after Iran-US nuclear deal leaks in global media; deal can legitimately put the Islamic Republic's oil back on the export market

Written by Flavia Marinho
Published 06/09/2022 às 11:31
Oil prices evaporate after Iran-US nuclear deal leaks in global media – Image FoxNews

John Bolton warns that US deal will make Iran a “better partner” for Russia and pose a threat to the world!

Iran announced that it has received the US response regarding the 'final' proposal for a nuclear deal presented by the European Union, representing a new advance in the diplomatic exchange that has developed in recent weeks to revive the pact signed in 2015, which can put Iran's oil Islamic Republic back on the export market. The news reverberated and had a direct impact on the price of oil, which fell to US$ 6 a barrel on August 30th.

“[We began] a detailed review of the comments made to the text by the US counterpart,” spokesperson for the Ministry of Foreign Affairs, Nasser Kanani. The ministry added that "Iran will issue its reaction [to the US proposal] through the EU [which carries out the job of coordinating talks between Washington and Tehran]."

The deal had stalled since 2018, following the US withdrawal ordered by US President Donald Trump. Talks to save the nuclear pact started in April 2021 in Vienna, with the indirect participation of the USA. Between 4 and 8 August, the last session of these negotiations took place, after the presentation of a 'final' proposal by the EU, accepted by the Iranian side. The EU High Representative for Foreign Affairs, Josep Borrell, declared that "what can be negotiated has been negotiated and is now in a legal text".

Biden administration is making a 'staggering mistake' in resuming Iran nuclear deal

Former President Donald Trump's national security adviser John Bolton said the Biden administration was making a "staggering mistake" in trying to return to a nuclear deal with Iran, and argued that the deal would make Iran a "better partner ” to Russia and would pose a threat not only to the Middle East region, but also to the world.

"I think the immediate consequence, obviously, will be the unfreezing of billions of dollars of Iranian assets, which will come back under your control, with your discretion to spend it on your nuclear program, your support of international terrorism in the Middle East and beyond," Bolton told CNBC's Dan Murphy. “It really is a stunning mistake by the Biden administration.”

The US National Security Council refuted Bolton, saying Iran would not get sanctions relief without "real" inspections.

If the original 2015 deal came back, "Iran would receive no sanctions relief, short of imposing meaningful and verifiable restrictions on its nuclear program and returning to the most comprehensive inspections of [the] regime already negotiated," a Council spokeswoman said. of National Security, Becky Farmer.

The deal's resurrection hinges on one sticking point — a long-standing investigation by the International Atomic Energy Agency (IAEA) on traces of uranium at three of Iran's undeclared nuclear sites years ago. Tehran wants the investigation closed, something the agency and Western governments oppose.

Islamic Republic was the fifth largest oil producer among OPEC members in 2020

Last year, signatories to the original deal began the first of what would become many rounds of talks in Vienna to revive the deal. The Trump administration withdrew from the agreement in 2018.

Under the 2015 deal, formally known as the Joint Comprehensive Plan of Action, or JCPOA, Iran would have scrapped much of its nuclear program and allowed more international inspections in exchange for relief from economic sanctions.

Iran, which was the fifth largest oil producer among OPEC members in 2020, may raise additional crude oil supplies after a deal materializes. That would offer some relief to a global market in an energy crisis.

Partnership between Russia, China and Iran would have global implications

Bolton warned that lifting sanctions could prompt Iran to forge closer ties with Russia.

“I think it stands to reason that, relieved of international sanctions, a richer and stronger Iran will move closer to Russia. … By helping to free Iran from economic sanctions, he makes it a better partner for Russia.”

Bolton noted that Russia and China have an existing “enter” and that a three-way partnership between Russia, China and Iran would have global implications.

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Flavia Marinho

Flavia Marinho is a postgraduate engineer with extensive experience in the onshore and offshore shipbuilding industry. In recent years, she has dedicated herself to writing articles for news websites in the areas of industry, oil and gas, energy, shipbuilding, geopolitics, jobs and courses. Contact her for suggestions, job openings or advertising on our portal.

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