U.S. Secretary of State John Kerry (3rd R), U.S. Secretary of Energy Ernest
Moniz (2nd R) and French Foreign Minister Laurent Fabius (R) meet at the Palais
Coburg, the venue for nuclear talks in Vienna, Austria July 14, 2015.
Iran and six major world powers reached a nuclear deal on Tuesday, capping
more than a decade of negotiations with an agreement that could transform the
Middle East.
Reaching the agreement did not bury the controversy of one of the most
bitterly contested diplomatic issues of the day: the European Union called it a
"sign of hope for the entire world", while Israel called it an
"historic surrender".
Under the deal, sanctions imposed by the United States, European Union and
United Nations will be lifted in return for Iran agreeing long-term curbs on a
nuclear program that the West has suspected was aimed at creating a nuclear
bomb.
The agreement is a major political victory for both U.S. President Barack
Obama and Iran's President Hassan Rouhani, a pragmatist elected two years ago
on a vow to reduce the diplomatic isolation of a country of 77 million people.
But both leaders face scepticism from powerful hardliners at home after
decades of enmity between nations that referred to each other as "the
Great Satan" and a member of the "Axis of Evil".
Rouhani was quick to present the deal as a step on the road towards a wider
goal of international cooperation. The deal "shows constructive engagement
works", he tweeted. "With this unnecessary crisis resolved, new
horizons emerge with a focus on shared challenges."
For Obama, the diplomacy with Iran, begun in secret more than two years
ago, ranks alongside his normalization of ties with Cuba as landmarks in a
legacy of reaching out to enemies that tormented his predecessors for decades.
While the main negotiations were between the United States and Iran, the
four other U.N. Security Council permanent members, Britain, China, France and
Russia, are also parties to the deal, as is Germany.
"HISTORIC MISTAKE"
Israeli Prime Minister Benjamin Netanyahu called the deal "a bad
mistake of historic proportions".
"Iran will get a jackpot, a cash bonanza of hundreds of billions of
dollars, which will enable it to continue to pursue its aggression and terror
in the region and in the world," he said. "Iran is going to receive a
sure path to nuclear weapons."
Israeli Deputy Foreign Minister Tzipi Hotovely called the deal an
"historic surrender". She said on Twitter that Israel would "act
with all means to try and stop the agreement being ratified", a clear
threat to try to use its influence to block it in the Republican-controlled
U.S. Congress.
Congress has 60 days for a review, though if it rejects the deal, Obama can
use his veto. It would require two- thirds of lawmakers to override such a
veto, which means some of Obama's fellow Democrats would have to rebel against
one of their president's signature achievements in order to kill the deal.
Iran is not likely to receive many of the benefits from the lifting of
sanctions until next year because of the need to ratify the deal and verify its
implementation.
"Celebrating too early can send a bad signal to the enemy,” Iranian
conservative lawmaker Alireza Zakani was quoted as saying in parliament by Fars
News agency.
He noted that Iran's National Security Council would also review the deal,
"and if they think it is against our national interests, we will not have
a deal", he said. "The Islamic Republic will not sign a bad deal.”
The final round of talks in Vienna involved nearly three weeks of intense
negotiation between U.S. Secretary of State John Kerry and Iranian Foreign
Minister Mohammad Javad Zarif.
It was something that would until recently have been unthinkable for two
countries that have been bitter enemies since 1979, when Iranian
revolutionaries stormed the U.S. embassy in Tehran and held 52 Americans
hostage for 444 days.
"NEW CHAPTER OF HOPE"
"I believe this is an historic moment," Zarif, who was educated
in the United States and developed a warm rapport with Kerry, told a news
conference. "Today could have been the end of hope on this issue, but now
we are starting a new chapter of hope. Let's build on that."
European Union foreign policy chief Federica Mogherini, who acted as
coordinator for the powers, said: "It is a decision that can open the way
to a new chapter in international relations and show that diplomacy,
coordination, cooperation can overcome decades of tensions and confrontations.
"I think this is a sign of hope for the entire world."
Hatred of the United States has been a defining trait of Iran's ruling
system, on display last week when it marked the last Friday of the Ramadan
fasting month with an annual day of protests, crowds chanting "Death to Israel!"
and "Death to America!".
Obama first reached out to Iranians with an address in 2008, only weeks
into his presidency, offering a "new beginning".
Iran has long denied it is seeking a nuclear weapon and has insisted on the
right to nuclear technology for peaceful means, although Western powers feared
the enriched uranium that it was stockpiling could be used to make a bomb.
Obama never ruled out using military force if negotiations failed.
Iran's IRNA news agency said billions of dollars in frozen funds would be
released under the deal, and sanctions on its central bank, national oil
company, shipping and airlines would now be lifted.
According to a text of the agreement published by the Russian Foreign
Ministry, Iran will retain the right to conduct research into enriching uranium
for 10 years, without stockpiling it.
"SNAPBACK
MECHANISM" FOR SANCTIONS
Western diplomats said Iran had accepted a "snapback" mechanism,
under which some sanctions could be reinstated in 65 days if it violated the
deal. A U.N. weapons embargo is to remain in place for five years and a ban on
buying missile technology will remain for eight years.
Alongside the deal, the United Nations nuclear watchdog, the International
Atomic Energy Agency, announced an agreement with Iran on a road map to resolve
its own outstanding issues with Tehran by the end of this year.
The main deal with the world powers depends on the IAEA being able to
inspect Iranian nuclear sites and on Iran answering the watchdog's questions
about the possible military aims of previous research.
The prospect of an agreement benefiting Iran is anathema to U.S. allies in
the Middle East. Tehran does not recognize Israel and supports its enemies. And
Arab states ruled by Sunni Muslims, particularly Saudi Arabia, believe that
Shi'ite Muslim Iran supports their foes in wars in Syria, Yemen and elsewhere.
But there is also a strong reason for the United States to improve its
relations with Iran, as the two countries face a common foe in Islamic State,
the Sunni Muslim militant group that has seized swathes of Syria and Iraq.
For Iran, the end of sanctions could bring a rapid economic boom by lifting
restrictions that have drastically cut its oil exports, and have shrunk its
economy by about 20 percent, according to U.S. estimates. The prospect of a
deal has already helped push down global oil prices because of the possibility
that Iranian supply could return to the market.
Oil prices tumbled more than a dollar on Tuesday after the deal was
reached. [O/R]
"Even with an historic deal, oil from Iran will take time to return,
and will not be before next year, most likely the second half of 2016,"
Amrita Sen, chief oil analyst at London-based consultancy Energy Aspects, told
Reuters. "But given how oversupplied the market is with Saudi output at
record highs, the mere prospect of new oil will be bearish for sentiment."
(Reuters)