Iran Reaches Deal to Curtail Nuclear Activities

Iran has reached a significant agreement with major world powers, culminating in a deal announced on Sunday. The agreement stipulates that Iran will curtail certain nuclear activities in exchange for approximately USD 7 billion in sanctions relief.

The deal involves Iran and the P5+1 group, which includes the U.S., Russia, China, France, the U.K., and Germany. Under this agreement, Iran is required to limit key aspects of its nuclear program in return for the easing of some economic sanctions.

As part of the arrangement, Iran will cease enriching uranium beyond 5% and will neutralize its stockpile of uranium enriched above that level. Additionally, the country will provide increased access to nuclear inspectors while maintaining a moratorium on new sanctions for six months.

In terms of economic relief, Iran will gain access to approximately USD 7 billion worth of trade, which includes oil, automobile and airplane parts, as well as gold and precious metals, during this six-month period.

This interim agreement, which can be reversed, allows for further negotiations aimed at establishing a permanent deal. World powers have previously accused Iran of potentially developing nuclear weapons under the guise of its nuclear program, a claim that Iran has continuously denied.

In a televised address, Iranian President Hassan Rouhani reiterated Iran’s stance, stating the nation would never pursue nuclear weapons. He emphasized that “Iran’s right to enrichment has been recognized.”

U.S. President Barack Obama expressed support for the agreement, highlighting the rollback of significant components of Iran’s nuclear program. However, Israeli Prime Minister Benjamin Netanyahu criticized the deal, labeling it a “historic mistake,” and stated that Israel would not be bound by the terms.

Following the announcement, oil prices fell on Monday, with January light sweet crude futures dropping 1.45% to USD 93.48 per barrel on the New York Mercantile Exchange. On the ICE Futures Exchange in London, January Brent oil futures decreased by 2.05% to USD 108.77 per barrel. Gold futures for February delivery also declined, trading at USD 1,232.15 per troy ounce, down 1%.