The just concluded nuclear agreement between Iran and the West dominated nuclear powers is historic in bringing a total change in the economic and strategic relationships in the region.
The agreement reached at the Swiss city of Lausanne where the Headquarter of International Olympic Committee lies, includes Iran, which is a civilisational power of the East; reducing its nuclear programme for civilian purposes. Similarly, Teheran will open its nuclear facilities for international monitoring.
In return, the US and European powers will lift their economic sanctions on Iran. This means that the agreement will open a window of economic opportunities for Iran which is a leading producer of crude. Already crude prices have come down by $2.5 per barrel in response to the agreement.
In the past, Iran was relying heavily on anti-west alliances and arrangements including Russia and China for limited trade prospects. Now, with the West and Tehran reaching on consensus, the latter may design an ambitious economic engagement with the rest of the world.
Mohammad Javad Zarif, the Iranian foreign minister, described the agreement saying that “we have stopped a cycle that is not in the interest of anybody”. American President Obama described it as a “historic understanding.”
Celeberations wit mass participations were reported from different Iranian cities welcoming the breakthrugh pact.
The agreement will be an opportunity for many third parties who have tremendous trade potential with Tehran. For example, India and Iran had always a synergy in their economic and strategic interests. The same logic applies to China also which supported Iranian cause traditionally.
But a more significant impact of the agreement will be that on West Asian politics. With the untouchability against Tehran ended, the Shiite Iran will come strong against the ongoing Sunni led Arab reinforcement in the Middle East. From the political angle, given the turbulant present situation in the Middle East, the Lusanne agreement is a Shiite victory.