What's The Deal With Iran?
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Politics and Activism

What's The Deal With Iran?

The Iran Nuclear Deal, Economics Unraveled

What's The Deal With Iran?

As it draws near to a close, The Iran Nuclear Deal has every member of Congress ready to blow. But what is the real deal behind it?

The deal, which would require Iran to slow its nuclear development process in exchange for a lift on the country’s international oil and financial sanctions, will not only have military ramifications, but financial effects as well.

American media outlets, and the president himself, are focusing on the nuclear outcomes of this deal: Iran will be forced to downsize their uranium and plutonium production sizably, slowing, but not altogether stopping, their ability to assemble nuclear bombs. Simply stated, this deal would be good for America in preventing or slowing down nuclear war.

Not many people, however, are really thinking about what Iran is gaining from this deal: lifts on their international oil and financial sanctions. According to Fortune, this means that Iran would be able to export between half a million and one million barrels of oil per day, and the lack of financial sanctions would allow them to receive adequate money for it. Thus, causing Iran’s economy to skyrocket.

An economic splurge in one country benefits world economy as a whole, right? Well, let’s take a closer look at who will be cashing in on this deal. Fortune reported that, were the deal to be approved, several countries in the European Union, including Norway and France, would have potential to relaunch joint oil ventures with Iran. These ventures were put on hold in 2012. Additionally, European car manufacturers will be able to reclaim their successful business of selling cars in Iran.

The only foreseeable economic benefits that America could reap from the deal fall under financial services. While big banks could cash in my doing business with Iranian oil companies, the US will take time to adjust to the changes, allowing time for banking policy to change. This means America will not be directly economically effected by the deal for the time being.

If America will see no economic downfall as a result of the deal, and war will potentially be averted, then why is it receiving no support in Washington?

The reason is found in Congress’s lack of trust in Iran. The country will continue to produce nuclear power, while reaping the benefits of lifted sanctions, stated New York Democratic Senator Chuck Schumer in a post for disapproving the deal on August 6.

Obama spoke on the issue at American University on August 5, focusing on the military implications of the deal.

“The choice we face is ultimately between diplomacy and some form of war,” Obama stated. “How can we, in good conscience, justify war before we’ve tested a diplomatic agreement that achieved our objective?”

His words are having a hard time swaying democrats and republicans alike. Schumer responded directly to Obama’s speech, stating his decision not to support the deal was not because he believed war was a viable option or because he was challenging diplomacy, but simply because he did not trust Iran.

If the deal is approved, Iran and the European Union will both reap considerable financial benefits, and there is no guarantee that nuclear attacks will be prevented. It seems Obama is going to have to work a little bit harder to gain the support of even his own party if he wants this deal to pass. Otherwise, it’s back to the drawing board.

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This article has not been reviewed by Odyssey HQ and solely reflects the ideas and opinions of the creator.
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