EU and US poised to lift Iranian sanctions
Reconnecting the country to the global economy could have widespread geopolitical consequences

The International Atomic Energy Agency is today expected to announce whether Iran has fulfilled its obligations under a multilateral deal signed last July.
If it has, both the European Union and the US will formally lift the sanctions that have been in place for nearly a decade and reconnect Iran to the global economy.
What does this mean for Iran?
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
This is the moment when "ordinary people in Iran will start feeling the impact of the landmark deal", says The Guardian, as "Iranian banks re-establish connections with the European financial system and private firms pursue business opportunities without fear of Western punishment".
But the long-awaited moment may prove to be "a bit of a political and economic letdown" for the Islamic Republic, says USA Today: with the price of oil continuing to fall, the annual revenues from exports may be less than half of what was estimated.
What is certain is the immediate impact a $56bn-$100bn (£39bn-£69bn) cash infusion released from frozen assets will have on the country. Washington had hoped this money would filter down to Iran's growing middle-class and empower them to push for a more liberal society. However, USA Today suggests it may instead be used to build up the country's military capability and prop up those in power.
What does it mean for the world economy?
It might not be the "sexiest of titles", says the BBC's economics editor Kamal Ahmed, but Implementation Day "is certainly one of the most important dates of the year for the global economy, alongside its diplomatic and political significance".
Iran has the fourth-largest oil reserves in the world and intends to increase output by half a million barrels a day almost immediately. Coupled with the ban on US oil exports due to expire this year, the global energy market looks ready to become even more saturated, driving oil prices down even further.
How will it affect diplomatic relations?
In a sign of what is at stake, both the US and Iran moved quickly to avoid a diplomatic incident after ten US sailors were captured by the Revolutionary Guard earlier this week. The Independent says the two countries have worked "too long and too hard on the nuclear deal and have too much to lose by abandoning it now".
The big question is whether the agreement will strengthen Iran's hand in the Middle East, especially against its military and economic rival Saudi Arabia.
For their part, the Saudis have continually voiced their concerns about Iran’s newfound wealth. Following a meeting with US Secretary of State John Kerry, Saudi Arabia's foreign minister Adel al-Jubeir said:
"Every country in the world is worried about this. Iran's record has been one of war and destruction, terrorism, destabilisation, interference in the affairs of other countries and the concern in most countries in the world is that Iran not use these funds in order to fund destabilisation activities, but instead use the funds to improve the wellbeing of its people."
Experts will be watching closely to see the effect sudden wealth will have on the various proxy wars Iran is fighting, most notably in Syria.
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
-
June 28 editorial cartoons
Cartoons Saturday's political cartoons include stupid wars, a critical media, and mask standards
-
Thai fish pie with crispy turmeric potatoes recipe
The Week Recommends Tasty twist on the Lancashire hot pot is given a golden glow
-
Palestine Action: protesters or terrorists?
Talking Point Damaging RAF equipment at Brize Norton blurs line between activism and sabotage, but proscription is a drastic step
-
One year after mass protests, why are Kenyans taking to the streets again?
today's big question More than 60 protesters died during demonstrations in 2024
-
Iran nukes program set back months, early intel suggests
Speed Read A Pentagon assessment says US bombing of Iranian nuclear sites only set the program back by months, not years. This contradicts President Donald Trump's claim.
-
Trump says Iran and Israel agreed to ceasefire
Speed Read This followed a night of Israeli airstrikes on Tehran and multiple waves of missiles fired by Iran
-
How developed was Iran's nuclear program and what's left now?
Today's Big Question Israel and the United States have said different things about Iran's capabilities
-
Trump gives himself 2 weeks for Iran decision
Speed Read Trump said he believes negotiations will occur in the near future
-
What would a US strike on Iran mean for the Middle East?
TODAY'S BIG QUESTION A precise attack could break Iran's nuclear programme – or pull the US and its allies into a drawn-out war even more damaging than Iraq or Afghanistan
-
US says Trump vetoed Israeli strike on Khamenei
Speed Read This comes as Israel and Iran pushed their conflict into its fourth day
-
After Israel's brazen Iran attack, what's next for the region and the world?
TODAY'S BIG QUESTION Following decades of saber-rattling, Israel's aerial assault on Iranian military targets has pushed the Middle East to the brink of all-out war