A big deal, but not for Iran’s economy

by Robin Bew

The six-month interim deal between Iran and the P5+1 countries, aimed at curbing Iran’s nuclear programme, marks a welcome breakthrough for diplomacy. The hard-won agreement, which offers Iran some sanctions relief in return for restrictions on activities such as uranium enrichment and more intrusive inspections of nuclear sites, is only a first step in a long and arduous negotiation process. But it could lead to a more comprehensive agreement, and—most importantly—it vastly reduces the chances of violent conflict. However, our Middle East analysts caution that the deal is no panacea as yet for Iran’s ailing economy. The most punitive oil and financial sanctions will stay in place, hampering the country’s recovery from two years of economic contraction.

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